By Keren Concepcion G. Valmonte, Reporter
ALLDAY Marts, Inc. has set the final offer price of its initial public offering (IPO) at 60 centavos per share or 25% lower than the 80-centavo high-end price in its prospectus, the Villar-led company told the exchange on Wednesday.
The company is offering 6.857 billion shares for 60 centavos each, with an overallotment option of 685.71 million shares. The company may raise nearly P4.53 billion should the overallotment option be exercised.
Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message that the lowered price may “encourage more investors to participate in the offering given the potential capital appreciation in the open market upon listing day.”
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a separate Viber message that the final price “could also reflect business or economic challenges since the pandemic started last year amid restrictions on minors and senior citizens from going out, thereby reducing foot traffic or sales for some retailers.”
Proceeds from the offer will be used to repay debt as well as for capital expenditures and initial working capital for its store network expansion.
AllDay is planning to expand its 33-store network to 45 by the end of next year, and up to 100 stores by end-2026.
According to its preliminary prospectus dated Sept. 28, the company is looking to conduct its offer period from Oct. 18 to 25.
Meanwhile, its listing at the main board of the Philippine Stock Exchange is tentatively slated for Nov. 3. Shares of AllDay will be listed under the ticker symbol “ALLDY.”
The company engaged PNB Capital and Investment Corp. as the sole issue manager of the offer and it will be joined by BDO Capital & Investment Corp. and China Bank Capital Corp. as joint lead underwriters and bookrunners.
Incorporated in December 2016, AllDay has since grown to record a net income of P220 million in 2020, surging from P17 million in 2017.
In August, AllDay reported a first-half profit growth of 58.8% to P179.6 million year on year, driven by a 19.7% sales improvement to P4.49 billion.
AllDay is part of the Villar group of companies, along with other listed firms AllHome Corp., Golden MV Holdings, Inc., and Vista Land & Lifescapes, Inc.
In a separate disclosure to the exchange on Wednesday, home improvement firm AllHome said it is close to vaccinating 100% of its work force across 55 branches nationwide as part of the Villar group’s VHealthy initiative.