Villar-owned AllDay Marts files for P5.8-B IPO

MANILA, Philippines — AllDay Marts Inc. has registered for a P5.8 billion initial public offering in a bid to raise cash for debt payments and capital expenditures.

The supermarket operator owned by the country’s richest man, Manny Villar, is planning to sell 6.9 billion common shares at a price of up to P0.80 each, filing documents released by the Securities and Exchange Commission on Wednesday showed.

If there would be great investor demand for the offer, AllDay plans to sell 685.7 million more shares to the public. Assuming full exercise of the overallotment option, AllDay is expected to raise P5.8 billion in net proceeds.

The company targets to list its shares on the Philippine Stock Exchange on November 3.

Broken down, 77.5% of net proceeds will be used to pay old bank loans, which amounted to P4.1 billion as of end-June and were used to fund the company’s spending plans and working capital for its existing 33 stores. The remaining 22.5% will go to capital expenditures and will cover the costs of its store network expansion plans.

AllDay is targeting to have up to a total of 45 stores by 2022 and 100 stores by the end of 2026.

“The actual amount and timing of disbursement of the net proceeds from the Primary Shares for the uses stated above will depend on various factors which include, among others, changing market conditions or new information regarding the cost or feasibility of our expansion projects,” the company said.

Despite disruptions from the pandemic, AllDay’s balance sheet remains generally healthy. In the first half, the company reported a 58.8% on-year profit growth to P179.6 million on the back of 19.7% annual jump in sales to P4.49 billion.

But the company said the lingering health crisis is still a threat to its business. AllDay said there may be delays in the targeted opening of new stores within the time frames it initially intended due to prolonged lockdowns. At the same time, weak consumer confidence amid a pandemic-induced economic slump could weigh on sales.

“As the situation evolves, these indirect impacts may become more significant and could also have a severe adverse impact on the Company’s results of operation and cash flow,” AllDay said.

The Philippines’ is emerging as one of the major IPO markets in the region this year despite a pandemic-induced volatility. Data showed capital raised at the PSE amounted to P122.46 billion in the first half, which included two IPOs, two follow-on offerings, two stock rights offerings and three private placements.