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Stock Commentary

AllDay Marts slashes its offer price by 25%

Merkado Barkada
AllDay Marts slashes its offer price by 25%
This is the second straight IPO that has re-priced by 25% or more, but it’s hard to tell whether that has more to do with hard supply and demand economics or just a few cases of wishful preliminary prospectus thinking.
Merkado Barkada

The Villar Family’s grocery store chain, AllDay Marts [ALLDY 0.60 pre-IPO], is heading to market at P0.60/share, down 25% from the P0.80/share maximum price that is used in its draft prospectus.

The announcement confirmed the number of shares to be sold (6,857,143,000 primary shares and up to 685,714,000 secondary option shares, for a total of 7,542,857,000 shares) but did not provide any further context to the IPO.

The revised pricing reduces ALLDY’s potential proceeds from the transaction from P5.5 billion to P4.1 billion.

That figure excludes the option shares which will be sold by AllValue Holdings Corp., ALLDY’s parent company and one of Manny Villar’s personal holdcos. All of the proceeds from the sale of the option shares will go to AllValue Holdings.


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I have to admit that it’s a little strange to see a major announcement from the Villar Family that is not accompanied by a slick marketing package of press releases and media hits that weave “these-things-were-never-said-out-loud” quotes from various Villar Family members together with a rotation of talking points tailored to appeal to retail customers and retail traders.

That said, it was also quite interesting to see how deep the Villars felt they needed to cut their pricing in order to generate interest in the offering. A 25% price drop is very significant.

I wonder if the Villars heard that the excitement for this offering was luke-warm at the previous price point, or if the family has decided to conservatively price the ALLDY offering to avoid a repeat performance of their AllHome [HOME 10.40 4.31%] IPO, which was born “heavy” and has never spent any real time above its offer price. HOME’s first couple of months were spent pinned right near the offer price, with no highs or lows to speak of until the bottom fell out during the COVID crash and sent the stock tumbling down 60% from that initial offer price.

This is the second straight IPO that has re-priced by 25% or more, but it’s hard to tell whether that has more to do with hard supply and demand economics or just a few cases of wishful preliminary prospectus thinking.

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