MANILA (Reuters) - Philippines’ AllHome Corp, owned by the country’s richest man, said late on Wednesday it plans to raise up to $404 million in the country’s largest initial public offering (IPO) this year, as the bourse trades near multi-month highs.
The retailer of home furnishing and construction supplies will sell as many as 1.29 billion shares at a maximum price of 16 pesos a share, the company said in a preliminary prospectus posted on its website.
The maximum offer price is a placeholder amount included in the filing to securities regulators. It is not uncommon to cut the maximum offer price late in the IPO process.
AllHome, owned by Manuel Villar, the Philippines’ richest man, operates 25 home improvement stores mostly in the capital. It plans to open 19 more stores nationwide, supported by fresh capital from the IPO.
Private construction of infrastructure and homes is among the key drivers of the Philippine economy, one of the fastest growing in Asia.
Under the initial timeline, final pricing is set on Sept. 16, ahead of the offer period on Sept. 18-24 and listing on Oct. 1, AllHome said.
The company's IPO filing comes as the Philippines' broader index .PSI trades at its highest in 16 months.
The Philippines’ benchmark index was up 10.3% year-to-date on expectations of looser monetary policy. It is the best performing bourse in southeast Asia, but companies have shied away from IPOs given sluggish markets early this year.
AllHome hired UBS, CLSA, Credit Suisse, PNB Capital and China Bank Capital to arrange the share sale.
Reporting by Neil Jerome Morales; Editing by Jan Harvey