Wilcon files P7.9-B IPO

Wilcon Depot Inc., the country’s leading home improvement and construction supplies retailer, has formally filed an application with the Securities and Exchange Commission to embark on an initial public offering ( IPO) in March 2017.

In its prospectus filed with the SEC, Wilcon said it was looking to raise as much as P7.9 billion through the sale of 1.39 billion primary shares at up to P5.68 per share.

The STAR earlier reported about Wilcon’s planned IPO to raise funds for expansion in a bid to solidify its presence in existing markets and to widen its market in fast growing cities outside Metro Manila.

It plans to build additional stores from 2017 to 2019 “in order to reach and help more Filipinos nationwide.”

The company is specifically eyeing to expand in Cavite, Zamboanga, Iloilo, Tacloban, Cabanatuan, Bicol, General Santos, Davao, Lucena, Isabela, Tagum, Tuguegarao and Surigao.

It will also use the proceeds for debt repayment and for strategic acquisitions.

Wilcon has appointed First Metro Investment Corp. as the sole issue manager, lead underwriter, and bookrunner for the offering.

The company is targeting to list on March 23, 2017, with the offering expected to run from March 13 to 17.

Wilcon operates the home improvement and retail construction business of the Belo family, led by its chairman, William Belo.

Since opening its first branch in 1977, Wilcon has expanded to a network of at least 36 stores nationwide.

It offers local and international brands of tiles and flooring, plumbing and sanitary wares, electrical and lighting products, hardware and tools, furniture, furnishings and houseware, paints, and building materials, among others.

The company operates its stores under the “Wilcon Depot” and “Wilcon Home Essentials” store formats.

Companies have started to brave the market again despite the prevailing volatile conditions.

The first to list this year was the Villar family’s Golden Haven with P778 million followed by Cemex Holdings Philippines (P25 billion) and just recently Pilipinas Shell Petroleum Corp. (P18.4 billion).

Other companies that are targeting to list on the local bourse are leading pizza chain Shakey’s with a P5.5 billion IPO, mobile celebrity games provider Xeleb Inc. to raise P736 million, technology company Audiowav (P2.66 billion) and barrestaurant operator Gweilo Corp. (P125 million).