AllHome to expand into new markets

MANILA, Philippines — AllHome Corp., the Villar Group’s soon-to-list one-stop shop home improvements retail chain, plans to more than double its store network in 2020 from 25 at present. 

The company has plans to open 19 stores in the second half of this year and has plans for another 19 sites for new store openings in 2020.

In all, this would bring AllHome’s store network to 63 stores from 25 as of June 30, already exceeding an earlier target of putting up 50 branches across cities within the Philippines. 

“We intend to grow our business aggressively through the opening of new retail stores, both in cities where we have an existing presence and in other fast-growing cities across the Philippines, especially within Mega Manila. We intend to leverage our experience from our operations and continue to replicate our success as we expand our store network. We currently have a robust pipeline of 19 sites for new store openings in the second half of 2019 and plans for another 19 sites for new store openings in 2020,” AllHome said in its initial public offering (IPO) prospectus.

AllHome also has plans to expand into new customer segments such as the AllBuilders format.

AllBuilders will focus on contractors and builders, offering a more extensive selection of hardware, tiles and sanitary wares, and construction materials. 

It will primarily be located outside of Mega Manila, where there is significant growth in construction activities and therefore demand for one-stop shop solution for a full range of construction related products in the coming years. 

AllHome aims to open six AllBuilders stores in the second half of 2019. 

The company has filed an application with the Securities and Exchange Commission for a P20.7-billion IPO which would potentially be this year’s first pubic listing. 

According to the 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 over allotment option of up to 168.7 million common shares at an offer price of up to P16 per share. 

Estimated net proceeds amount to P11.5 billion, of which the company would use P6.9 billion 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 offer period of Sept. 18 to Sept. 24.

AllHome is owned by tycoon Manuel B. Villar Jr.,  a former House Speaker and Senate President who is now the country’s richest man, according to Forbes Magazine’s 2019 list of the richest people in the world.