By Keren Concepcion G. Valmonte, Reporter
SHARES of Villar-led AllDay Marts, Inc. surged in its debut on the stock market on Wednesday, as retail investors sought to grab a piece of the fast-growing supermarket chain.
AllDay shares opened at 90 centavos per share, hitting the 50% daily limit from its initial public offering (IPO) price of 60 centavos.
“Christmas came early for investors. AllDay’s rapid expansion in strategic areas triggered a lot of excitement,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a text message.
“This performance reminds us of [MerryMart Consumer Corp.]’s IPO and we may see more ‘jackpot’ trading days,” Mr. Mangun said. MerryMart also saw share prices surge by 50% on its first day of trading in June last year.
The supermarket operator raised P4.53 billion from its IPO, which will be used for debt repayment and store expansion.
Owned by tycoon and former Senate President Manuel B. Villar, AllDay currently has 33 supermarkets and aims to have 45 by 2022 and 100 by end-2026.
Claire T. Alviar, senior research and engagement officer at Philstocks Financial, Inc., said investors were attracted to the company’s trade proposition, with shares priced below one peso apiece and its P13-billion market capitalization.
“The positive outlook for the consumer retail industry also spurred optimism as this sector remains resilient amid the COVID-19 (coronavirus disease 2019) pandemic, especially that ALLDY (AllDay’s ticker symbol) is strengthening its online presence through digital innovation to meet the current needs of the consumers,” Ms. Alviar said in a Viber message.
Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said the AllDay IPO also benefited from improved market sentiment driven by expectations of increased holiday spending.
“[AllDay’s IPO] was a recipient of the positive sentiment among investors as it moved up in price in anticipation of heavy consumer spending on Christmas holiday season,” Mr. Pangan said in a text message.
According to the PSE, AllDay set the record for the most number of local small investors (LSI) availing of the offer.
“They subscribed to more than 1.1 billion shares, exceeding the LSI allocation of 685.7 million shares by 1.62 times. I understand that the allotment for institutional investors was likewise 2.5 times oversubscribed,” PSE President and Chief Executive Officer Ramon S. Monzon said during the listing ceremony on Wednesday.
“This clearly demonstrates the trust and confidence investors have in the Villar family with their proven experience and success in their various businesses,” Mr. Monzon said.
AllDay is the Villar family’s fifth listed company, after Golden MV Holdings, Inc., Vista Land & Lifescapes, Inc., Vistamalls, Inc., and AllHome Corp.
The company is expecting a shift in market behavior in the Philippines because of the “growing middle class” segment. AllDay Vice-Chairman Camille A. Villar said the supermarket chain, which operates in the mid-premium segment, is “the local player that is best equipped to meet this challenge head-on.”
AllDay boasts of a premium in-store aesthetic, an e-commerce platform, the first self-checkout kiosks, and personal shopper service.
By the end of the trading session, AllDay saw P405.73 million with 450.81 million shares switch hands. Philstocks Financial’s Ms. Alviar said market demand may further mean more gains for the issue.
“Moving forward, we’re still expecting a further upside given the demand from the market. However, fundamental-wise, [AllDay] has already reached our target price,” Ms. Alviar said.