AllDay Marts cuts IPO price by 25%
MANILA, Philippines (Update 1, 4:29 p.m.) — Villar-owned supermarket chain AllDay Marts Inc. slashed the offer price for its maiden share sale, giving investors a discount that could push up demand for the offer.
In a notice to the stock exchange on Wednesday, the company set the final offer price at P0.60 per share, cheaper than P0.80 price it initially proposed.
Luis Limlingan, sales head at local brokerage Regina Capital, said the move could stimulate investor appetite for AllDay shares. "Not sure why they decided to price lower but definitely demand will be strong as a result," Limlingan said in a text message.
AllDay’s initial public offering from October 18 to 25 will see 6.86 billion primary common shares up for sale. If demand is robust, the company would sell 685.7 million more common shares.
Assuming full exercise of the overallotment option, AllDay is expected to raise P4.1 billion in proceeds. The company intends to use an estimated 77.5% of proceeds to reduce its debt stock amounting to P3.3 billion, which was used to bankroll the construction of its 33 stores.
The remaining amount will be used for store network expansion. AllDay is hoping to have a total of 45 stores by 2022 and 100 stores by the end of 2026.
"As the firm opens more stores, we believe that ALLDY will be able to sustain the uptrend of its profitability and steadily take away more and more market share from the big mid-premium supermarket players," Limlingan said.
AllDay will make its stock market debut on November 3. Once listed, the grocery store chain will join other Villar-controlled companies in the local bourse, namely AllHome Corp., Vista Land & Lifescapes Inc., Vistamalls Inc. and Golden MV Holdings Inc.
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