AllHome lowers public offer price to P11.5/share

AllHome Corp., the Villar Group’s one-stop shop home improvement retail chain, has set the offer price for its initial public offering at P11.50 per share, lower than the P16 per share filed earlier.

AllHome will sell up to 1.29 billion shares, consisting of a primary and secondary offer of up to 1.12 billion shares and an overallotment option of up to 168.7 million common shares.

At P11.50, the deal could raise as much as P14.9 billion for the company, lower than the P20.7 billion projected proceeds at an offer of P16 per share.

Estimated net proceeds would be used for capital expenditures and initial working capital to fund store expansion and for debt repayment.

The company is targeting to list on Oct. 10 or after the offer period which will run from Sept. 30 to Oct. 4.

“As part of our store network expansion, we plan to open up to 19 new stores in the second half of 2019 and up to 19 new stores in 2020. In addition, we are expanding AllHome Alabang to increase its net selling space from 5,845 square meters to approximately 12,340 sq. m,” the company said in the prospectus.

It noted that approximately 39.8 percent of the net proceeds from the sale of primary shares will be used toward repaying outstanding short-term and long-term financial obligations with several Philippine banks such as Union Bank, Security Bank, Philippine Business Bank and AllBank, carrying interest rates of 6.25 percent to nine percent.

AllHome tapped UBS as sole global coordinator and joint bookrunner along with CLSA and Credit Suisse. PNB Capital and Investment Corp. and China Bank Capital Corp. are the co-lead underwriters.

AllHome is led by Manuel Villar, a former House Speaker and Senate president, who is the country’s second richest man with a net worth of $6.6 billion, according to Forbes Magazine’s 2019 Philippines Rich List.

His wife, Cynthia, is a reelected senator while his son, Mark, is part of President Duterte’s Cabinet as Secretary of Public Works and Highways.

Aside from AllHome, the Villar Group’s businesses include coffee and food, supermarkets, real estate, malls as well as memorial and death care.

AllHome, which has 25 stores as of end-June, is a D-I-Y, hardware, appliances, electronic gadgets, indoor and outdoor furniture, homeware, and décor shop where all the professional support customers need is available in-house – building experts, product knowledge and advice from customer service staff, and even interior designers.