THE owner of retail chain Wilcon Depot, which sells home items and other construction supplies, has filed its application for an initial public offering (IPO), hoping to raise as much as ₧7.9 billion.
A filing with the Securities and Exchange Commission (SEC) showed Wilcon Depot Inc. intends to sell around 1.39-billion primary shares at P5.68 per share.
The final offer price shall be determined prior to the scheduled listing in March 2017, it said. Net proceeds of the IPO will be used to fund its expansion activities, refinance existing debt obligations and for other general corporate purposes.
The company said it plans to solidify its presence in existing markets and expand its foothold in fast-growing cities outside Metro Manila by building additional stores in 2017 to 2019 in order to reach and help more Filipinos nationwide.
About 81 percent of the proceeds, or P6.08 billion, will be used for store network expansion; P1 billion for debt repayment; and the rest for general corporate purposes. The company said it will expand its network in Cavite, Zamboanga, Iloilo, Tacloban, Cabanatuan, Bicol, General Santos, Davao, Lucena, Isabela, Tagum, Tuguegarao and Surigao.
Wilcon said it will pay its various loans with several local banks, including Allied Bank, Banco de Oro, Bank of the Philippine Islands and Rizal Commercial Banking Corp. These loans were used to fund the company’s capital expenditures over the years, it said.
Wilcon has appointed First Metro Investment Corp. as the deal’s issue manager, lead underwriter and bookrunner. The company operates the retail construction business of the Belo family, led by its Chairman William Belo.
Since opening its first branch in 1977, Wilcon has expanded to a network of 36 stores nationwide, with a complete spectrum of product offerings, including 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.
“Guided by its mission to help people build, improve and refine their homes for a sustainable and comfortable life, Wilcon has been building its customers’ big ideas for almost 40 years,” the company said.
“It has established a successful brand name that resonates as a one-stop shop and a favored destination for customers, industry-professionals, DIY enthusiasts and homebuilders for their home improvement and construction needs.”