AllDay Marts Inc, the Philippines-headquartered supermarket chain founded by the country’s richest person Manuel B. Villar Jr, sizzled on its market debut on Wednesday with its stock jumping 50% from its listing price.
It hit 0.90 Philippine centavos on the first day of trading, from its IPO price of 0.60 apiece. The 50% jump is the daily limit set by the Philippine Stock Exchange.
A total of 449 million shares valued at 404 million pesos ($8 million) changed hands during the first half of the trading day.
Villar, a former Senator whose fortune is worth $7.3 billion according to the Bloomberg Billionaires Index, raised a combined $89 million by selling 7.52 billion shares at 60 centavos each in the share sale on October 18 to 25. The offer was about four times oversubscribed.
“We are truly excited to bring the AllDay experience public. We have long believed in the Filipinos deserving a better supermarket experience, one that is at par with the best in the world, and this IPO helps us do just that,” said Villar.
AllDay’s debut comes at a time when the Philippine IPO market continues to heat up and is on track to be the most active in Southeast Asia this year.
So far, six deals have raised a combined $2.33 billion this year, according to Bloomberg data, nearly hitting the total of $2.7 billion raised in the archipelago from 2016 to 2020.
In an earlier announcement, the supermarket chain said it intends to use part of the proceeds from the IPO for the rollout of its new stores. Since its incorporation in December 26, the company has already rolled out 33 stores.
It intends to reach a milestone of 100 stores by 2026, leveraging its synergistic relationship with one of the country’s leading homebuilders, Vista Land, also owned by Villar.
To date, AllDay has so far covered only 25 out of the 147 cities and municipalities where Vista Land is present.
AllDay’s sales from 2018 to 2020 jumped from 3 billion pesos to 7.9 billion pesos, translating to a compounded annual growth rate (CAGR) of 61%. Net profit grew almost fourfold to 220 million pesos in 2020, a CAGR of 95% during the same period.
For the first half of 2021, AllDay said it recorded 4.5 billion pesos in sales and P180 million in net profit.
The company targets Filipino consumers that are now looking for more choices and more value tiers, shifting from an inclination to value to a preference for the premium, according to a Euromonitor International report.
“We are truly excited to bring the AllDay Supermarket experience public. With premiumnisation happening all over the world, including the Philippines, we believe that we are the local player that is best equipped to meet this challenge head-on,” said AllDay vice-chairman Camille Villar.