AllDay prices IPO at P0.60 a share, to raise P4.5B

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    AllDay Marts Inc. has priced its initial public offering (IPO) at P0.60 per share, potentially grossing P4.52 billion.

    The company is looking to sell to the public 7.54 billion shares, divided into 6.86 billion primary shares covering the initial offer and another 685.71 million secondary shares owned by mother company AllValue Holdings Inc.

    AllDay was earlier looking at an IPO of as much as P6.04 billion, with the IPO priced to as high as P0.80 per share.

    Of the gross proceeds, AllValue Holdings may receive P411 million.

    The IPO will run from October 18 to 25, 2021 with listing on the PSE scheduled for Nov. 3, 2021. Pricing for the IPO is eyed Oct.12, 2021.

    AllDay said it will use the proceeds for debt repayment, capital expenditures, and initial working capital for store network expansion.

    AllDay earlier said that with the proceeds of the IPO, it will retire its P4.1 billion “high-cost debt” it tapped from seven banks it used to fund store network expansion.

    “These loans carry interest rates of 5 to 8.08 percent. These loans were obtained to fund the capital expenditures and initial working capital of our 33 existing stores,” it said.

    AllDay said retiring the debts will save the company P264.4 million in financing cost per year.

    As for its network expansion plans meanwhile, AllDa said it intends to increase its stores to 45 stores by 2022 and 100 stores by the end of 2026.

    “The new stores planned up to the end of year 2022 will be funded mostly from the net proceeds from the sale of primary share. Out of the P1,190.7 million of the net proceeds intended for store network expansion, P710.9 million will be allotted for capital expenditures (i.e., building fit-out and equipment, furniture and fixtures) and P479.8 million will be allotted for initial working capital,” AllDay said.

    “As all of our stores are leased, we will not incur any expenses for construction. We do not have plans to acquire land,” it added.

    AllDay said about 70 percent of the offer shares will be sold to qualified buyers and other investors in the Philippines.

    AllDay tapped PNB Capital and Investment Corp. as sole issue manager for the transaction. PNB Capital will also work with BDO Capital & Investment Corp. and China Bank Capital Corp. as joint lead underwriters and joint bookrunners.

    AllDay Marts is a supermarket operator with a total of 33 stores spanning 55,881 square meters in aggregate net selling space, as of June 30. It plans to expand its store network to 45 by 2022 and 100 by the end of 2026.