Details of Wilcon Depot’s IPO in March 2017

James Ryan Jonas

Wilcon Depot Inc., a retailer of home improvement and construction supplies, is set to proceed with its initial public offering or IPO in the Philippine Stock Exchange (PSE) this March 2017.

The company plans to raise as much as P7.9 billion from the said offering by issuing up to 1.39 billion common shares to the public.

ipo-initial-public-offeringPrice and Listing Date

Update: On Friday, March 17, Wilcon Depot announced that the stock’s official offer price has been set at P5.05 per share.

The offer period will begin on March 20 and will end on March 24.

The listing date of Wilcon’s shares (when stocks will be listed and will start trading on the PSE) is on March 31, 2017.

Use of IPO Proceeds

The company intends to use P6.08 billion from the expected proceeds for store network expansion until 2019.

The company has announced plans to expand presence in areas including Isabela, Tuguegarao, Cabanatuan, Cavite, Lucena, Bicol, Iloilo, Tacloban, Zamboanga, Davao, Tagum, General Santos, and Surigao.

The company will also use P1 billion from the IPO proceeds to repay outstanding debt with banks, such as Allied Bank, BDO Unibank, Bank of the Philippine Islands, and Rizal Commercial Banking Corporation.

Remainder of the proceeds will be used for general corporate purposes and to fund strategic acquisitions of Wilcon Depot, according to its IPO prospectus.

Offered Shares

At least 70% of the offer shares will be sold to qualified institutional buyers and the general public while 20% of the shares are to be sold through trading participants of the Philippine Stock Exchange.

The remaining 10% will be allocated to small local investors.

Wilcon has appointed First Metro Investment Corp. as issue manager, bookrunner, and lead underwriter for the IPO.

Company Background

Wilcon Depot is primarily owned by the Belo family, led by its chairman William T. Belo. It operates its stores under the Wilcon Depot and Wilcon Home Essentials store formats.

The company opened its first store in 1977 and has since expanded to a network of 36 branches nationwide. It sells home improvement and construction supplies, including tiles and flooring, plumbing and sanitary wares, electrical and lighting products, hardware and tools, furniture, furnishings and houseware, paints, and building materials, among others.

Past IPOs in 2016 and Planned IPOs in 2017

If the IPO pushes through, Wilcon will be one of the first companies to IPO in 2017.

Other firms that have announced plans for an IPO this year include:

  • Audiowav Media Inc. (P2.66 billion)
  • TVI Resource Development (Philippines) Inc. (P1.66 billion)
  • Pointwest Technologies Corp. (P2.21 billion)
  • Green Power Panay Philippines Inc. (P222.8 million)
  • Bermaz Auto Philippines (distributor or Mazda Philippines)
  • Eagle Cement Corporation

In 2016, the following companies completed their initial public offerings:

  • PIZZA – Shakey’s Pizza Asia Ventures Inc. (P3.96 billion) in December
  • SHLPH – Pilipinas Shell Petroleum Corp. (P19.5 billion) in October
  • CHP – Cemex Holdings Philippines Inc. (P25.1 billion) in July
  • HVN – Golden Haven Memorial Park Inc. (P778 million) in June

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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.