AllHome tightens IPO price to ₱11.50-₱14.00

Home improvement retailer AllHome Corporation, a firm controlled by tycoon Manuel B. Villar, has tightened its initial public offering (IPO) price range to 111.50 to 114.00 per share.

This translates to an offering size of 114.88 billion to 118.11 billion as against the earlier maximum offer price of 116.00 per share which would have raised up to 120.7 billion.

AllHome will offer 750 million new common shares along with 375 million existing common shares currently held by AllValue Holdings Corporation, which has the option to offer 168.75 million more shares.

The offer shares represent 34.5 percent of the company’s issued and outstanding capital stock, which will comprise a total of 3.75 billion shares after the maiden offering and assuming full exercise of the overallotment option.

The AllHome IPO will run from September 30 to October 4 this year.

Proceeds from the issuance

of new shares will be used by the company for capital expenditures and initial working capital for store network expansion, debt repayment, and general corporate purposes.

AllHome is a one-stop shop home store in the Philippines. Since incorporating in 2013, it has opened 27 stores with an aggregate net selling space of about 215,994 square meters (sq.m.) across 22 cities and municipalities.

The company will open 18 more stores before the yearend and 25 more in 2020, using funds raised from its maiden offering.

It has named PNB Capital and Investment Corporation and China Bank Capital Corporation as its domestic underwriters; UBS AG, Singapore Branch as its sole global coordinator, stabilizing agent and joint bookrunner; while other joint bookrunners are CLSA Limited and Credit Suisse (Singapore) Limited.

The IPO will have a local small investor (LSI) component, wherein 10 percent of the offered shares will be allocated for LSIs. (With Reuters report)