Allocation for international and institutional investors in AllHome Corp.’s P14.9-billion initial public offering (IPO) was three times oversubscribed, according to Gerry Valenciano, PNB Capital and Investment Corp. president.
PNB Capital serves as domestic underwriter together with China Bank Capital Corp. UBS AG, Singapore Branch meanwhile is the sole global coordinator, while CLSA Ltd. and Credit Suisse (Singapore) Ltd. are joint bookrunners.
Valenciano said there was strong interest for AllHome shares because at the price of P11.50 per share, the company “left money on the table for investors.”
AllHome is offering 750 million new common shares along with 375 million existing common shares currently held by AllValue Holdings Corp., on top of another 168.75 million shares to cover the greenshoe option.
AllHome’s IPO will run between Sept. 30 and Oct. 4, 2019.
Of the 1.125 billion initially offered shares, 70 percent was offered to international investors as well as qualified domestic institutions.
For the domestic offer, 20 percent of 225 million shares will be offered through trading participants of the Philippine Stock Exchange, while 10 percent or 112.5 million shares will be offered through the local small investors program.
The AllHome offer shares represent 34.5 percent of the company’s issued and outstanding capital stock, which will comprise a total of 3.75 billion shares after the maiden offering and assuming full exercise of the overallotment option.
Proceeds from the issuance of new shares will be used by the company for capital expenditures and initial working capital for store network expansion, debt repayment and general corporate purposes.
Ryan Tapia, China Bank Capital president, said AllHome’s IPO is the “largest Philippine IPO in recent years” and is the fastest to be concluded at less than four months from its kickoff last June 17 to its listing on Oct. 10, 2019.
Tapia pointed out AllHome is going public after just six years in the business but is already valued at P43 billion.
AllHome is a one-stop shop home store in the Philippines. Since incorporating in 2013, it has opened 27 stores with an aggregate net selling space of about 215,994 square meters (sq.m.) across 22 cities and municipalities.
The company will open 18 more stores before yearend and another 25 in 2020, using funds raised from its maiden offering, more than doubling its net selling area to 443,280 sq.m. by 2020.
The company will be starting a new retail format called AllBuilders, which will offer a more extensive selection of hardware, tiles and sanitary wares and construction materials targeting contractors and builders. It intends to build six stores this semester.