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Billionaire Manuel Villar Is Planning The First Philippine IPO In a Year

Billionaire Manuel Villar Is Planning The First Philippine IPO In a Year

(Bloomberg) -- AllHome Corp., owned by billionaire Manuel Villar, is preparing to sell as much as 20.7 billion pesos ($405 million) worth of shares in what could be the Philippines’ first initial public offering in more than a year.

The Manila-based retailer of home furnishings and construction supplies will use the proceeds to fund expansion and repay debt, according to a draft preliminary prospectus posted on its website.

Billionaire Manuel Villar Is Planning The First Philippine IPO In a Year

Key Insights

  • Companies in the Philippines have been reluctant to sell shares amid a stock slump that made the bourse one of the world’s biggest losers last year. There was only one IPO in 2018, the property company D.M. Wenceslao & Associates Inc.
  • Firms are opting to raise funds through bond sales as interest rates ease, said BDO Capital & Investment Corp. President Eduardo Francisco. Uncertainty over global growth as trade tensions continue between the U.S. and China is also a factor behind the tepid market activity, he said.
  • Metro Pacific Investments Corp.’s hospital unit, coconut producer Axelum Resources Corp., and ACE Medical Group are among those preparing for IPOs and are waiting for market conditions to improve.

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  • The benchmark Philippine Stock Exchange Index entered the bull market on Monday after climbing more than 22% from a November low. The local market is one of the top gainers in Asia this year, thanks to cooling inflation, continued monetary easing, and the prospect of stronger corporate earnings.
  • The company plans to list on October 1 and to sell as many as 1.125 billion primary and secondary shares at a maximum price of 16 pesos each. It also provides 168.75 million shares for overallotment. More details in its draft prospectus here.

--With assistance from Cecilia Yap and Ian Sayson.

To contact the reporter on this story: Ditas Lopez in Manila at dlopez55@bloomberg.net

To contact the editors responsible for this story: Cecilia Yap at cyap19@bloomberg.net, Rachel Chang, Clarissa Batino

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