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All Day, Petron set capital raising

AllDay Marts will offer up to 6.857 billion primary common shares at a price of P0.80 per share.



The Securities and Exchange Commission (SEC) has approved in principle two significant activities that showed local firms believe the long-awaited economic rebound had started.

Likely to be granted a go signal were the initial public offering (IPO) bid of AllDay Marts Inc. of the Villar Group and a bond offering by Petron Corporation under shelf-registration.

In its meeting on 23 September, the SEC en banc resolved to render effective the registration statements of AllDay Marts and Petron covering 22,857,145,000 common shares and P50 billion of fixed-rate bonds, respectively, subject to certain remaining requirements.

AllDay Marts will offer up to 6.857 billion primary common shares at a price of P0.80 per share, with an over-allotment option of up to 685.7 million common shares to be listed on the main board of the Philippine Stock Exchange.

Net proceeds from the sale of the primary offer shares could amount to P5.296 billion. The company could raise an additional P530.5 million, assuming the overallotment option is fully exercised.

The Villar-led company intends to use the IPO proceeds for debt repayment, capital expenditures, and initial working capital for store network expansion.

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

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

Petron eyes P18B in 1st tranche
Petron may issue the P50 billion worth of fixed-rate, peso-denominated bonds in one or more tranches within three years.

For the first tranche, the listed oil refiner and marketing company will offer to the public up to P18 billion worth of four-year Series E bonds due in 2025 and six-year Series F bonds due in 2027.