AllHome Corp., the Philippine home improvement retailer owned by Filipino billionaire Manuel Villar, has made its stock market debut today, 10 October 2019, on the main board of the Philippine Stock Exchange.
AllHome's first trading day saw a tight range, with shares opening at its intraday high of 11.62 pesos (EUR 0.20) a piece then closing at its offer price of 11.50. It hit a low of 11.48 pesos and averaged at 11.55 pesos, with 1.71 billion pesos worth of shares changing hands. Volume was capped at 148.747 million shares.
AllHome, which had 20 outlets nationwide as of June 2019, was expected to have raised PHP 12.937 bn (EUR 228 mio) from the maiden offering of 1.12 billion primary and secondary shares after pricing the stock at the lower end of its indicative pricing range of 11.50-16 pesos. Including the exercise of its overallotment option of 168.75 million shares, proceeds should have reached PHP 14.878 bn (EUR 262 mio).
The company's float, said to be the biggest initial public offering in the Philippine bourse in three years, was initially expected to raise up to 20.62 billion if the shares were sold at 16 pesos apiece.
"The offer price [of 11.50 pesos per share] was determined based on a book-building process and discussions amongst the company, the selling shareholder, the joint international bookrunners and the domestic underwriters," the company disclosed to the Philippine Stock Exchange.
At 11.50 pesos per share, the company should have raised PHP 8.625 bn (EUR 152 mio) from the sale of 750 million primary shares. Proceeds for these were earmarked for more outlets as well as debt repayment.
AllHome earlier allocated PHP 6.2 bn (EUR 109 mio) for the construction of 45 outlets between mid-2019 and end 2020, on expectations that it would raise 12 billion pesos from the primary shares sale. But it also said that should net proceeds from this end up "lower than expected", 54.2 per cent of the amount was to be set aside for its store expansion plan.
If AllHome pushes through with this plan, it will have up to 4.67 billion pesos to use for building the 45 new stores slated for the second half of 2019 to end of 2020.
AllHome operates mall-based, standalone, and specialty stores that sell furniture, hardware, appliances, tiles and sanitary wares, homewares, linens, and construction materials. In June 2019, it had an aggregate net selling space of 196 327 m², Products are sourced from more than 200 international and 580 local brands.
The company plans to launch a fourth format, AllBuilders, at the end of the year. With an average selling space of 4 410 m², it will cater to contractors and builders and offer a more extensive selection of hardware, tiles and sanitary wares, and construction materials, with 120 000 SKUs.
There will be detailed reports about AllHome and the Philippine home improvement market in the next issue of the trade magazine DIY International.
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