AllHome marks strong stock market debut
ALLHOME Corp. met investor expectations at its market debut on Thursday, with its shares gaining 0.52% at the end of trading.
The one-stop-shop home improvement store of real estate tycoon Manuel B. Villar, Jr., dubbed by Forbes this year as the country’s richest man, raised P14.9 billion after exercising its over-allotment option.
Its shares closed at P11.56 apiece. It actually opened the day 1.04% higher than its P11.50-per-share initial public offering (IPO) price at P11.62 — also the day’s peak — and hit a low of P11.42.
It is now listed on the Philippine Stock Exchange’s (PSE) Main Board — with the stock symbol HOME — under the retail subsector of the services sectoral index.
The PSE index itself closed 1.09% higher at 7,765.03, while services edged up 0.87% to 1,512.11.
“For a first day, it’s okay. I’m very happy,” Mr. Villar, AllHome chairman, told reporters after the company’s listing ceremony at the PSE Tower in Taguig City. “Despite the very heavy volume, price is steady… So I’m happy.”
For PSE Chairman Jose T. Pardo, “The market debut of this young, vibrant, and rapidly growing company is a testament that even new companies can already tap the stock market for their capital requirements.”
AllHome Vice Chairman Camille A. Villar said the company aims to double its market share of 7.1% in the home improvement industry by next year. Expansion will be focused on Metro Manila and neighboring towns for now, but the longer-term plan is to bring it to the rest of Luzon, the Visayas and Mindanao.
“By the end of 2020, when we have 70 stores, we plan to double our market share from what it is now,” she said, noting AllHome currently has 27 stores across 22 cities and municipalities.
The company is allocating P3.5-3.6 billion for its capital expenditures until next year, which will be largely funded by its IPO.
Mr. Villar said his group of companies may launch another IPO next year. “You know that we have a lot of retail concepts. This is the first (to hold an IPO). If there’s a first, then there will be a second,” he said.
AllHome’s maiden share sale followed those of real estate management firm Kepwealth Property Phils, Inc. and coconut products manufacturer Axelum Resources Corp. — Denise A. Valdez
Source: https://www.philstar.com/business/2019/10/11/1959159/phinma-energy-sets-p15-billion-borrowings
Tags: All Homes
