AllHome Corporation Going Public | Marvin Germo

AllHome Corporation Going Public

By: Marvin Germo | July 20, 2019

 

Villar Plans The Country’s First IPO

AllHome Corp., owned by billionaire Manuel Villar, is preparing to sell as much as 20.7 billion pesos or an estimated of 1.29 billion common shares by launching the first initial public offering (IPO) this 2019. Based on the company’s prospectus, 750 million shares will be primary shares and the offer price is up to 16.00 pesos per share. The stock market debut is expected to happen this coming September and the public can’t seem to stop the excitement. With all the success that happened and still happening in the real estate industry, this is good news for investors planning to invest more in this sector. If you haven’t started investing yet, this is the time that you begin with your investing journey.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.

Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019

ICON Iloilo – August 17, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019

Allotment of Proceeds

Out of 1.29 billion common shares, the 375 million common shares will be secondary shares and are planned to be placed out by AllValue Holdings Corporation, the company’s key shareholder. The company also allotted an allowance of 168.75 million shares in case the demand for it increases. If all the shares will be sold, including the additional shares, an estimated 34.5% will be in the hands of the public. The firm disclosed that the proceeds of P12 billion from the sale of the primary portion of the IPO will be utilized for capital expenditures in order to expand its stores and repayment of its debt. Out of P12 billion, P6.8 billion will be allotted for the capital expenditure and initial working capital for store expansion, P4.5 billion will be for debt repayment, and the rest will be for general corporate purposes.

First IPO in 2019

Since 2018, companies here in the Philippines have been unwilling to sell shares because of last year’s stock slip that made one of the biggest losers in the world. Only one IPO was able to successfully enter the stock market last year and that was D.M. Wenceslao & Associates, Inc., a property company in the country. Instead of listing their stocks, companies are choosing to raise their funds through sales of bonds. Metro Pacific Investments Corporation’s hospital unit, ACE Medical Group, and Axelum Resources Corporation are among the firms that are planning for IPO but still waiting for the improvement of the market.

AllHome’s Performance Q1

AllHome posted a P207.1 million net profit during the first quarter of 2019. This is five times higher than its 2018’s P43.6 million net profit. Meanwhile, the revenue went up to P2.38 billion or 68% higher than in the same period last year. The timing for AllHome to do IPO this year is perfect since the market has gone up and it’s continuously improving. The stocks of Villar have a great performance, which is ideal for investors in today’s market. The news that the firm is preparing for IPO could be the reason why Wilcon slipped by a total of 7% during the last four trading seasons.

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