Villar Group eyeing to raise up to P6 billion from All Day IPO

MANILA, Philippines — The Villar Group is targeting to list All Day, its supermarket chain operator, to raise up to P6 billion, according to its chairman Manuel Villar Jr.

“We will be doing an IPO of AllDay,” Villar told reporters at the launch of ViCon or the Villar Group Convention, a virtual property expo, yesterday.

All Day, under the company All Day Marts Inc., is targeting to do the initial public offering as early as October. It has already tapped banks to arrange the multibillion peso deal.

The exact timing has yet to be determined and would depend on market conditions, Villar said.

But he believes All Day is already ripe for an IPO with around 30 to 40 supermarkets across the country.

Proceeds will be used to further expand All Day’s footprint which is present in many different neighborhood communities in the country.

Villar said these neighborhood stores – where an AllDay supermarket sits beside other Villar retail concepts such as AllHome and The Coffee project – can easily become the preferred shopping districts of customers instead of the bigger and sprawling malls.

“People like to park and shop in neighborhood stores. I am confident we are superior than other commercial businesses in terms of providing quality shopping experience,” he said.

From 2017 up to present, All Day supermarket has successfully expanded its network to at least 35 stores, including locations in Molino, Kawit, Las Piñas, Libis, Taguig, Sta. Rosa, Pampanga, Global South, Naga, Iloilo, General Trias and Tanza, Evia, Starmall Alabang, Malolos, Dasmariñas, North Molino, Imus, Salawag, Dona Manuela and Cabanatuan, Sta. Maria, Santiago, Talisay and Cauayan.

The Villar Group’s Vista Land & Lifespaces Inc. is also looking to do an office REIT IPO this year, which will add to the two REITs in the stock market to date,

Ayala Land’s AREIT Inc. and Double Dragon’s DDMP REIT.

In the first quarter, Vista Land reported a 14 percent drop in consolidated net income to P2.1 billion, primarily due to higher interest expense, while EBITDA stood at P3.9 billion representing a decrease of seven percent year on year.

On the other hand, reservation sales increased by four percent to P16.1 billion.

Total revenues amounted to P8.7 billion, representing a decrease of 12 percent from the same period last year, with real estate revenues of P6.3 billion.

The company is looking at a capital expenditure of P27 billion this year, which is mainly for construction and land development.