MANILA, Philippines – Wilcon Depot Incorporated, one of the country’s leading retailers of home improvement and construction supplies, is pushing through with its planned P8-billion initial public offering (IPO) slated in the first quarter of 2017, according to the underwriter handling the deal.
First Metro Investment Corporation executive vice president Justino Juan Ocampo said Wilcon’s IPO will proceed in the first quarter of the year, as the window of opportunity for fund raising activities is better in the first half of 2017 versus the second half of the year.
Ocampo said the first half would be hectic for capital markets as people anticipate a possible hike in interest rates. At the same time, the issuers would want to make the most of the fact that the market remains very liquid.
“We see a hectic runway in the first half. Although a number of factors need to be watched, the market remains liquid which is very conducive for potential issuers,” he added.
‘Good offer price’
Ocampo said he expects Wilcon to get a good offer price as the company is a market leader.
It was in November 2016 when Wilcon filed its IPO application with the Securities and Exchange Commission.
It plans to sell up to 1.393 billion common shares at an offer price of up to P5.68 per share, for a total of up to P7.9 billion.
Net proceeds will be used to finance store expansion, debt repayment, and other general corporate purposes.
Of the expected proceeds, Wilcon said it plans to set aside P6.08 billion for store network expansion from 2017 to 2019.
It plans to expand its presence in several areas across the country, including Cavite, Zamboanga, Iloilo, Tacloban, Cabanatuan, Bicol, General Santos, Davao, Lucena, Isabela, Tagum, Tuguegarao, and Surigao.
Meanwhile, Ocampo also expects neighboring countries like Japan, China, Taiwan, and Korea to look for investment opportunities in the Philippines.
He said the Philippines is looking to gain inbound cross-border mergers and acquisitions (M&A) interest from Asian neighbors in select sectors including retail, manufacturing, and fast moving consumer goods (FMCG).
“Our Asian neighbors are looking for manufacturing, food production, and FMCG, and a lot of Philippine companies are also looking for partners to upgrade capacities. So it is something we are spending much time on as we see a lot of prospects for possible M&As,” Ocampo said. – Rappler.com