Local small investors’ subscription to AllDay Marts Inc.’s was 1.62 times oversubscribed that its underwriter, PNB Capital and Investment Corp., will be refunding investors’ money.
In a notice to investors, PNB Capital said there was an “overwhelming demand” for AllDay shares from local small investors with the subscription hitting 1.11 billion shares compared to the allocation of 685.72 million common.
“Due to the above mentioned distribution mechanism, certain LSI (local small investor) subscribers may have been allocated shares that are less than the amount subscribed and paid for,” PNB Capital said.
“For the affected LSI subscribers, please be advised that the receiving agent, Philippine national Bank acting through tis Trust Banking Group, shall refund the affected LSI subscriber, without interest, starting on the 5th banking day from the end of the offer period or on November 2, 2021,” it added.
Institutional demand meanwhile were earlier reported to have reached 2x the allocated shares, quoting market sources.
The retailing firm is selling to the public 7.54 billion shares, divided into 6.86 billion primary shares covering the initial offer and another 685.71 million secondary shares owned by mother company AllValue Holdings Inc., at an offer price of P0.60 apiece.
The company is expected to gross P4.52 billion, which the proceeds from primary offer will be used to retire P4.1 billion “high-cost debt” it tapped from seven banks to fund store network expansion.
Part of the proceeds from the IPO will also be used by AllDay for the rollout of its new stores.
“These loans carry interest rates of 5 to 8.08 percent. These loans were obtained to fund the capital expenditures and initial working capital of our 33 existing stores,” it said.
AllDay said retiring the debts will save the company P264.4 million in financing cost per year.
