Wilcon Depot stocks rise in market debut

MANILA, Philippines -  Shares of Wilcon Depot Inc. closed slightly higher in their first day of trading yesterday.

The stock closed at P5.33 per share, up five percent from its initial public offering price of P5.05 each share.

The IPO, which raised P7 billion in proceeds, was 3.7 times oversubscribed.

Wilcon Depot chairman William Belo said the company will use the funds for network expansion with 28 new stores planned in the coming years.

He said the company will expand its presence in the Visayas and Mindanao.

Belo remains confident about Wilcon Depot’s position in the industry despite competition from Ikea or Ace Hardware, saying the company has its own unique offerings and will have new products and innovations every year.

The oversubscription of the shares is a testament to the confidence investors have in the company’s expansion plans and its commitment to remain the Philippines’ leading home improvement retail company, he said.

First Metro Investment Corp. EVP Justino Juan Ocampo said Wilcon Depot was purchased by a broad spectrum of investors ranging from retail individuals to investment and trust funds, pension and retirement funds, banks, insurance companies and corporations.

He said the purely domestic offering was also participated in by foreign funds keen on  capitalizing on the country’s healthy economic growth outlook.

Other proceeds from the offering will be used to repay some existing debt obligations and for general corporate purposes.

FMIC is the  issue manager and joint lead underwriter with BDO Capital & Investment Corp. as joint lead underwriter.

At present, the company has a network of 37 stores nationwide and accounts for 70 percent of the market in its segment.

The offer shares represent 34 percent of the company’s outstanding common shares post-offer.

Wilcon was the first company to brave the equities market this year. Other companies planning to do an IPO are Eagle Cement Corp. (P9.2 billion), Cebu Landmasterz (P3.8 billion), Audiowav (P2.7 billion), Pure Energy Holdings  (P1.5 billion),  Xeleb (P736 million) and The Big Chill (P500 million to P600 million).

About P200 billion is expected to be raised from IPOs and follow-on offerings this year.