Primary and Secondary Offer of up to 1.13 billion common shares with overallotment Option of up to 168.7 million common shares
Offer Price: Up to ₱ 16.00 per share authorized capital stock of ₱6 billion divided into 5.9 billion common shares and 1 billion preferred shares with a par value of ₱0.10 per preferred share, of which 3 billion common shares are issued and outstanding.
Pricing is expected to be on September 27, Offer period will be from September 30 to October 4. Listing date and start of trading on the PSE will be on October 10.
Trading symbol “HOME.”
The total gross proceeds to be raised by the Company from the sale of the Primary Shares is estimated to be ₱12 billion intended to be used the net proceeds from the primary shares for capital expenditures and initial working capital to fund store network expansion, debt repayment, and general corporate purposes.
HOME primarily serves and targets customers within the upper middle income to upper income segment, which according to a study by the Philippine Institute of Development Studies, have an average monthly household income of approximately ₱70,000 and above AllHome Corp. is a one-stop shop home store in the Philippines.
Since the incorporation in 2013, the company have grown to 25 stores as of June 30, 2019, having an aggregate net selling space of approximately 196,327 sqm across 20 cities and municipalities. In the month of July 2019, it opened two more stores, increasing our total number of stores to 27 with an aggregate net selling space of approximately 215,994 sqm across 22 cities and municipalities. Its product offering spans seven key categories from over 800 local and international brands, including 18 in-house brands. These product categories are furniture, hardware, appliances, tiles and sanitary wares, homewares, linens and construction materials.
As of June 30, 2019, All Home had a total of 25 stores in operation, 19 of which are located in Mega Manila, three in Luzon (outside Mega Manila) and three in Visayas and Mindanao. It opened two new stores in the first half of 2019 and for the second half of 2019, we aim to open 20 more stores, comprising four large mall-based stores, four large free-standing stores, six small specialty stores and six AllBuilders stores. As of July 31, 2019, two of the four large mall-based stores planned for the second half of 2019 were opened.
Earnings per share for the first half of 2019: Php 21.72
2018: Php 8.24
Net income for first half of 2019: Php 434.3 million
2018: Php 110.4 million
Industry and market insight
- Supported by a young population, the thriving labour market drives consumer demand Government infrastructure projects and increasing urbanisation support growth of construction sector
- Economic power focused in key regions as government is set on redistributing wealth Growth of Home-and-Garden retailing and Consumer Appliance industries aligned with government initiatives
- One-stop shop concept increasingly popular due to convenience
- Overall steady growth over historical period as store-based retail continues to dominate
- Healthy growth trajectory due to growing construction industry (build, build, build) and IKEA’s entrance
- Continuous growth in infrastructure, residential and commercial construction
- Rising incomes especially among the middle class
- Growth in consumer credit with the emergence of alternative lenders
- Unreliable logistics limits growth for both e-commerce and traditional brick-and-mortar players
- Low online adoption for big ticket items
- Limited retail space expansion
- Poor transport infrastructure and the presence of independent local operators pose challenges in provincial areas
- Market saturation in the NCR and other first-tier cities
- High seasonal demand for small consumer appliances will prove a challenge for both manufacturers and certain retailers
September 5, 2019 9:20 am