Home improvement and construction supplies retailer Wilcon Depot Inc. is pushing through with its planned P8-billion initial public offering in the first quarter of 2017, according to the underwriter handling the deal.
First Metro Investments Corp. executive vice president Justino Juan Ocampo said Wilcon IPO would proceed in the first quarter as the window of opportunity for fund raising activities would be better in the first half than the second half.
Ocampo said the first-half period would be hectic for the capital market as people anticipated a possible hike in interest rates. Issuers would also want to take advantage of the fact that the market remained very liquid.
“We see a hectic runway in the first half. Although a number of factors need to be watched, the market remains liquid which is very conducive for potential issuers,” Ocampo said.
Ocampo said he expected Wilcon to get a good offer price as the company was a market leader in sector.
Wilcon filed an IPO application with the Securities and Exchange Commission in November.
It plans to sell up to 1.393 billion common shares at an offer price of up to P5.68 per share.
Net proceeds from the fund raising activity will be used to finance store expansion, debt repayment and other general corporate purposes
Wilcon said of the expected proceeds, it planned to set aside P6.08 billion for store network expansion from 2017 to 2019. It plans to expand its presence in Cavite, Zamboanga, Iloilo, Tacloban, Cabanatuan, Bicol, General Santos, Davao, Lucena, Isabela, Tagum, Tuguegarao, Surigao and Cabanatuan.