Villar Group to list ₱6 billion IPO for its supermarket chain All Day

The Villar Group is targeting to list All Day, its supermarket chain operator, to raise up to ₱6 billion.

All Day, under the company All Day Marts Inc., is targeting the initial public offering as early as October and has already tapped banks to arrange the multibillion peso deal.

The exact timing has yet to be determined and would depend on market conditions, according to Villar, but he believes All Day is already ripe for an IPO with around 30 to 40 supermarkets across the country. Proceeds will be used to further expand All Day’s footprint.

Villar said these neighborhood-type stores, where an AllDay supermarket sits beside other Villar retail concepts such as AllHome and The Coffee project, may become the preferred shopping districts of customers instead of the sprawling malls.

“People like to park and shop in neighborhood stores. I am confident we are superior to other commercial businesses in terms of providing a quality shopping experience,” said Villar.

From 2017 up to the present, All Day supermarket has successfully expanded its network to 35 stores, with locations in Molino, Kawit, Las Piñas, Libis, Taguig, Sta. Rosa, Pampanga, Global South, Naga, Iloilo, General Trias and Tanza, Evia, Starmall Alabang, Malolos, Dasmariñas, North Molino, Imus, Salawag, Dona Manuela and Cabanatuan, Sta. Maria, Santiago, Talisay and Cauayan.

The Villar Group’s Vista Land & Lifespaces Inc. is also looking to do an office Real Estate Investment Trust (REIT) IPO this year, which will add to the two other REITs in the stock market, Ayala Land’s AREIT Inc. and Double Dragon’s DDMP REIT.

In the first quarter, Vista Land reported a 14% drop in consolidated net income to ₱2.1 billion due primarily to higher interest expense, while EBITDA stood at ₱3.9 billion representing a decrease of 7% year on year. Reservation sales, on the other hand, increased by 4% to ₱16.1 billion.

Total revenues amounted to ₱8.7 billion, or a decrease of 12% from the same period last year, with real estate revenues of ₱6.3 billion.

The company is looking at a capital expenditure of ₱27 billion this year mainly for land development and construction.

SOURCE: Phil Star