AllDay Marts Inc. of the Villar Group said Wednesday it plans raise up to P6 billion from an initial public offering to bankroll store expansion and repay debt.
AllDay said in a filing with the Securities and Exchange Commission it would sell up to 6.857 billion common shares with an over-allotment option for another 685.7 million shares at a price of P0.80 apiece.
The company said it would use at least 77 percent of the proceeds from the IPO to repay P4.1-billion debt from seven banks.
“We believe that pursuing this strategy will increase the overall shareholder value of the company as this will decrease our financing cost by as much as P264.4 million per annum,” AllDay said.
The remaining 33 percent of the proceeds will be allotted for store expansion.
The company had 33 stores as of end-June, but plans to have 45 stores by 2022 and 100 stores by 2026.
Post-IPO, AllDay will have 33-percent public float, assuming the overallotment shares would be exercised. The offer period was tentatively set on Oct. 15 to 25 while listing would be on Nov. 3.
AllDay booked a net income of P179.6 million in the first half, up 58.8 percent from the same period last year, as sales climbed by 19.7 percent to P4.49 billion from a year ago.
“AllDay’s stellar performance thus far is another milestone in its consistent performance since its incorporation. We believe this is irrefutable proof of concept for our elevated supermarket experience. Our consistent year-on-year growth since 2017 show that our world-class stores, brought even closer to established communities resonate with the upgraded tastes and purchasing power of the Filipino people at large,” said Manuel Villar Jr, chairman of AllValue Holdings Inc., the parent company of AllDay.
The company’s net income registered a compound annual growth rate of 134 percent since its incorporation in 2016,
“We are very pleased with AllDay’s performance over this year and the past four years. We firmly believe we can sustain this performance given our consistency and commitment in executing and successfully operating a clearly differentiated supermarket concept,” said AllDay chief executive Frances Rosalie Coloma.
The company tapped PNB Capital and Investment Corp. as the sole issue manager for the offer.
AllDay will be the fifth listed company of the Villar Group, which also owns Vista Land & Lifescapes Inc., AllHome Corp., Vistamalls Inc. and Golden MV Holdings Inc.