Villar’s AllHome prepares P20.7-b IPO in September

AllHome Corp., a retail chain of home furnishing and construction supplies owned by the country’s richest man, Manuel Villar, is raising up to P20.7 billion from an initial public offering in September this year.

AllHome said in a filing with the Securities and Exchange Commission it planned to offer up to 1.12 billion primary and secondary shares with an over-allotment option for another 168.750 million shares at a price of P16 apiece.

The company plans to hold the maiden share offering in September.

Net proceeds from the offering will be used for capital expenditures and initial working capital to fund store expansion and debt repayment.

The company had 25 stores with a net selling space of 196,327 square meters across 20 cities and municipalities as of end-June 2019.

Its product offering spans seven key categories from more than 800 local and international brands, including 18 in-house brands. These product categories are furniture, hardware, appliances, tiles and sanitary wares, homewares, linens and construction materials.

AllHome plans to open 19 new stores in the second half of the year and another 19 stores in 2020.

It is also expanding its Alabang branch to increase its net selling space from 5,845 sqm to 12,340 sqm.

The company tapped UBS, CLSA and Credit Suisse as the  joint book-runners and PNB Capital and Investments Corp. and China Bank Capital Corp. as local underwriters for the offering.

All Home saw its net income expand by 354.2 percent in 2018 to P511.4 million from P112.6 million in 2017 as revenues jumped 46.9 percent to 7.19 billion from P4.89 billion.

The company also booked a net income of P207.1 million in the first quarter of 2019, up 375 percent from P43.6 million recorded in the same period last year.

First-quarter revenues surged 67.8 percent to P2.38 billion from P1.42 billion in 2018 following the opening of six new stores.

All Home will be the fourth listed company of the Villar group which also owns Vista Land & Lifescapes Inc., Golden Bria Holdings Inc. and Star Malls Inc.

Villar, a former senate president and presidential candidate, was named as the country’s richest man by Forbes in March for having a net worth of $5.5 billion.

All Home is also the second company to file for an IPO this year.  In June, Axelum Resources Corp., an export-oriented manufacturer of premium coconut products, filed its IPO application with the SEC with an intention to raise up to P7.7 billion.

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