By Arra B. Francia
UNDERWRITERS of Villar-led AllHome Corp. are confident investors will participate in its bid to raise up to P14.878 billion in its initial public offering (IPO), after a series of both local and international roadshows.
“We have been receiving a lot of interest, so that has been a strong sign of support of potential investors,” PNB Capital & Investment Corp. President Gerry B. Valenciano told reporters after AllHome’s investors’ briefing for the IPO in Taguig last Friday.
PNB Capital is the lead domestic underwriter for the offering.
Ryan Martin L. Tapia, president of co-lead domestic underwriter China Bank Capital Corp., also said that they have seen interest from cornerstone investors.
“As part of the roadshow for the bookbuilding process, the company was able to attract a lot of interest,” Mr. Tapia said in the same event.
The underwriters have allotted 70% of the offer to international investors and other qualified domestic institutions. Trading participants of the Philippine Stock Exchange (PSE) will be given 20%, while the remaining 10% will be offered through the local small investors program.
“We’re pretty confident local investors can make a good show and give the international investors a run for the allocation,” Mr. Tapia said.
AllHome has also hired UBS AG, Singapore Branch as the offer’s sole global coordinator and joint bookrunner, while CLSA Ltd. and Credit Suisse (Singapore) Ltd. will act as joint bookrunners.
The offer period for AllHome’s IPO will run from Sept. 30 to Oct. 4. Its shares will be listed on the main board of the PSE on Oct. 10.
The company, led by the country’s richest man Manuel B. Villar, is offering to the public a total of 1.29 billion shares at P11.50 each. This is made up of 1.125 billion common shares and 168.75 million shares as part of the over allotment option.
AllHome will use proceeds from the issuance to finance the establishment of 43 out of 45 new stores it will put up until 2020. This will bring its net selling area to 443,280 square meters by 2020.
Portions of the proceeds will be also used to repay debt obtained for the initial working capital of its existing 20 stores.
Asked if the company is on track to meet its target openings, AllHome Investor Relations Head Robirose M. Abbot answered in the affirmative, noting that they lease the property from other Villar-led establishments such as VistaMalls and Starmalls. The fit-out for their stores only takes about three to four months.