AllHome IPO attracts strong interest from investors

Manuel Villar-led AllHome Corp.’s initial public offering (IPO) sparked hunger among investors and caused the bulk of the P14.9-billion issuance allotted to international and institutional investors oversubscribed by three times.

The home furnishings and construction supplies retailer adjusted its final IPO price at the low end of its indicative range to P11.50 from the target price of P16. The company aims to raise P14.9 billion from the offering, which covers 1.125 billion common shares with an over-allotment option of 168.75 million shares.

Seventy-percent of the 1.125 billion shares were issued to international investors and qualified domestic institutions.

On the other hand, 20 percent, or 225 million shares, will be up for domestic offer through trading participants of the PSE while the rest, or 112.5 million shares, will be offered through the local small investors program.

Ryan Tapia, president of China Bank Capital Corp. who is co-lead domestic underwriter for the transaction, after an investors briefing Friday last week said the AllHome IPO is the largest in the country in recent years and is the fastest to be concluded at less than four months from its commencement in 17 June.

The offer period for the shares is scheduled from 30 September to 4 October, while listing at the Philippine Stock Exchange is slated on 10 October. After listing, AllHome will have a public float of 34.5 percent and market capitalization of up to P60 billion.

The company intends to use the proceeds of its maiden offering for capital expenditures and initial working capital to expand its store network, repay debt and allot for general corporate purposes.

Incorporated in 2013, its net profits has surged to P207.1 million in the first quarter of 2019 from P43.6 million in the same period in 2018.