MANILA, Philippines – Wilcon Depot Incorporated plans to raise as much as P7.9 billion through initial public offering (IPO) slated by the first quarter of 2017.
In a filing with the Securities and Exchange Commission, Wilcon said it plans to sell up to 1.393 billion common shares at an offer price of up to P5.68 per share.
Net proceeds from this fundraising activity will be used to finance store expansion, debt repayment, and other general corporate purposes.
Wilcon said it plans to set aside P6.08 billion of the expected proceeds for store network expansion from 2017 to 2019.
It plans to expand its presence in areas that include Isabela, Tuguegarao, Cabanatuan, Cavite, Lucena, Bicol, Iloilo, Tacloban, Zamboanga, Davao, Tagum, General Santos, and Surigao.
The company also intends to use P1 billion from the expected IPO proceeds to finance outstanding obligations with several banks, including Allied Banking Corporation, BDO Unibank Incorporated, Bank of the Philippine Islands, and Rizal Commercial Banking Corporation.
At least 70% of the offer shares will be sold to qualified institutional buyers and the general public, and 20% to be sold through trading participants of the Philippine Stock Exchange, and the remaining 10% to small local investors.
Wilcon, which plans to list under the main board of the PSE, operates the home improvement and retail construction business of the Belo family, led by its chairman William T. Belo.
Since opening its first store in 1977, Wilcon has expanded to a network of 36 branches nationwide, with a complete spectrum of product offerings which includes 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.
It operates its stores under the Wilcon Depot and Wilcon Home Essentials store formats.
Wilcon has appointed First Metro Investment Corporation as the issue manager, lead underwriter, and bookrunner.
The company targets offer period for the IPO to happen from March 13 to 17, while listing date has been tentatively set on March 23. – Rappler.com