AllDay Marts, controlled by billionaire Manuel Villar, has priced its IPO at 0.60 pesos per share, 25% below the maximum indicative price, adding to signs of a decline in the market. investor appetite in one of Southeast Asia’s hottest IPO markets.
The supermarket chain is the latest company in recent months to significantly reduce its IPO price. Billionaire Andrew Tan’s Megaworld last month lowered the price of its MREIT real estate investment trust and reduced the number of shares for sale, cutting the proceeds in half to 15.3 billion pesos ($ 302 million).
Despite slowing demand, Vista Land & Lifescapes – which is also controlled by Villar – is continuing its plan to split some of its offices and commercial properties into a REIT and listing on the Philippine Stock Exchange by the first. quarter 2022, according to a representative of the company. Vista Land originally planned to raise $ 200 million during the IPO by the fourth quarter of this year.
With AllDay’s lower IPO price, the supermarket chain can raise up to 4.5 billion pesos through the sale of 7.5 billion shares, including the 685 over-allotment option. , 7 million shares. The proceeds from the first sale of shares will be used to pay off AllDay’s debts and finance the store’s expansion.
“As for demand, I wouldn’t say it’s weak, but it’s not very strong either,” said April Lee-Tan, research manager at COL Financial. TBEN Asia. “There are still buyers of companies with good growth stories. However, because there are so many cheap stocks to choose from, the funds aren’t willing to pay a premium. “
Indeed, investors are spoiled for choice after the multitude of listings in the Philippines this year. Five companies have so far raised $ 2.2 billion from their IPOs this year, including instant noodle giant World Nissin’s $ 1 billion bid in June, the biggest sale of shares ever. carried out in the country.
Founded in 2016, AllDay currently has 33 stores in the Philippines and operates an online grocery delivery service. The company, scheduled for listing on November 3, plans to triple its branch network to 100 stores by 2026.
Among the Filipino tycoons, Villar, 71, a former senator, has actively launched IPOs of his companies in recent years. He went public with AllHome, a home improvement chain, in 2019. With a net worth of $ 6.7 billion, he was ranked No.2 on the Philippines’ 50 richest list released last month. His wife Cynthia is currently a senator.