SEC OKs AllDay Marts IPO, Petron’s P50 billion bond issuance

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the initial public offering of Villar-owned AllDay Marts Inc. and the P50-billion bond offering by Petron Corp.

In its meeting on Sept. 23, the Commission en banc gave its green light to the registration statements of AllDay Marts and Petron, covering 22,857,145,000 common shares and P50 billion of fixed-rate bonds, respectively.

AllDay Marts will offer up to 6.8 billion primary common shares at a price of P0.80 per share, with an over-allotment option of up to 685.7 million common shares, to be listed on the main board of the Philippine Stock Exchange.

It expects to raise P5.296 billion in net proceeds and could raise an additional P530.5 million, assuming the overallotment option is fully exercised.

The Villar-led company will use the IPO proceeds for debt repayment, capital expenditures, and initial working capital for store network expansion.

AllDay Marts is a supermarket operator with a total of 33 stores spanning 55,881 square meters in aggregate net selling space as of June 30. It plans to expand its store network to 45 by 2022 and 100 by the end of 2026.

According to the registration statement, the IPO will run from Oct. 15 to 25, with listing on the PSE scheduled for Nov. 3.

Petron, for its part, is looking to issue P50 billion worth of fixed-rate, peso-denominated bonds in one or more tranches within three years.

For the first tranche, Petron will offer to the public up to P18 billion worth of four-year Series E bonds due in 2025 and six-year Series F bonds due in 2027.

Petron expects to net P17.78 billion from the first tranche, to be used for the redemption of its Series A bonds, for the partial financing of its power plant project, and for the payment of existing debt.