Villar’s AllHome files P20.7-B IPO, first for 2019

MANILA, Philippines — Villar-owned AllHome Corp.., a home improvement retail chain, has filed an application with the Securities and Exchange Commission for a P20.7-billion initial public offering (IPO), the first this year.

Based on its IPO prospectus, AllHome Corp. will offer up to 1.29 billion shares comprising of a primary and secondary offer of up to 1.12 billion shares and an overallotment option of up to 168.7 million common shares at an offer price of up to P16 per share.

Estimated net proceeds would amount to P11.5 billion, of which P6.9 billion would be used for capital expenditures and initial working capital to fund store expansion. Around P4.5 billion would be used for debt repayment.

The company is targeting to list on Oct. 1 or after the Sept. 18 to 24 offer period.

“As part of our store network expansion, we plan to open up to 19 new stores in the second half of 2019 and up to 19 new stores in 2020. In addition, we are expanding AllHome Alabang to increase its net selling space from 5,845 square meters to approximately 12,340 square meters,” the company said.

It noted that approximately 39.8 percent of the net proceeds from the sale of primary shares will be used toward repaying outstanding short-term and long-term financial obligations with several Philippine banks such as Union Bank, Security Bank, Philippine Business Bank and AllBank, carrying interest rates of 6.25 percent to nine percent.

“These loans were obtained to fund our various capital expenditures. As of March 31, the outstanding balance of loans was P4.604 billion,” AllHome said.

The company has tapped UBS as sole global coordinator and joint book runner, along with CLSA and Credit Suisse. PNB Capital and Investment Corp. and China Bank Capital Corp. are the co-lead underwriters.

The company is owned by the family of Manuel Villar Jr., a former House speaker and Senate president, and is now the country’s richest man, according to Forbes Magazine’s 2019 list of the richest people on the planet.

He topped the list for the first time, ranking 317th globally with a net worth of $5.5 billion.

His wife Cynthia is an incumbent senator, while his son Mark is part of President Duterte’s Cabinet as secretary of public works and highways.

Aside from AllHome, the Villar Group is a fast growing conglomerate comprising of several other businesses such as coffee and food, supermarkets, real estate, malls as well as memorial and death care.

AllHome is a D-I-Y, hardware, appliances, electronic gadgets, indoor and outdoor furniture, homeware and décor shop where all the professional support customers need is available in-house – building experts, product knowledge and advice from customer service staff and even interior designers.

It has grown to 25 stores as of June 30, with a net selling space of approximately 196,327 sqm across 20 cities and municipalities.

AllHome also provides the needs of contractors, architects, and interior designers and takes away the need to travel to various industry hunting grounds.

In 2015, Villar first hinted of his overall plan to list AllHome.

“It will happen. We will wait for the right time. Right now, it’s too small yet,” Villar said at the time.

AllHome’s IPO filing comes just on the heels of the market’s recent visit to bull territory.