WILCON Depot Inc. is now set to be the first company to debut on the Philippine Stock Exchange (PSE) in 2017 after the PSE approved on Wednesday its plan to conduct an initial public offering (IPO) to raise P7.9 billion.
In a notice posted on its website, the PSE said it approved Wilcon’s plan to sell 1.39 billion primary shares priced at a maximum of P5.68 per share. The approval is subject to Wilcon’s compliance with post-approval conditions and requirements of the exchange, the PSE said.
After the IPO, Wilcon will have a 34 percent public float and market capitalization of P23.27 billion.
The company will hold an investor briefing on the IPO tomorrow, March 10, while the offer price will be determined on March 16 and announced on March 17.
The offer period is from March 20 to 24 and listing on the PSE is scheduled on March 31.
Proceeds of the IPO will go to store network expansion (P6.1 billion), debt refinancing (P972.4 million), and general corporate purposes (P500 million).
First Metro Investment Corp. was appointed as the lead underwriter, issue manager and bookrunner for the IPO, with BDO Capital & Investments Corp. as the joint lead underwriter, and RCBC Capital Corp. as a co-lead underwriter.
Under its five-year plan, the company aims to increase the number of its outlets to 65 by 2021, mostly in the Visayas and Mindanao. Wilcon had 37 stores as of end-2016.
Established in 1977, Wilcon is the home improvement and construction retail business of the Belo family, led by its chairman William T. Belo. It operates its stores under the Wilcon Depot and Wilcon Home Essentials store formats, known for their one-stop shop concept for customers, industry-professionals, do-it-yourself (DIY) enthusiasts, and homebuilders.