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Wilcon Depot sets final IPO price at P5.05 per share


Wilcon Depot Inc. has priced its initial public offering (IPO) at P5.05 per share, amounting to a total issue size of around P7.03 billion, the company said on Friday.

"First Metro Investment Corp., the issue manager, bookrunner and joint lead underwriter would like to inform you that the bookbuilding process was completed last night," Justino Juan R. Ocampo, First Metro executive vice president, said in a letter to the Philippine Stock Exchange.

The home improvements and construction materials retailer "... is selling 1,393,906,200 new common shares by way of primary offer," according to its IPO prospectus.

"I'm glad Mr. Belo agreed to pricing at a lower range to allow an upside," Eduardo Francisco, president of BDO Capital, told GMA News Online.

BDO Capital is one of the lead underwriters of the Wilcon IPO.

"At this price, he is allowing the shares to be priced at around 25 percent discount to comparable issuers," Francisco noted in a text message to GMA News Online.

The IPO is "... Almost two times oversubscribed even before brokers' orders and the start of the domestic offer," he said, citing firsthand knowledge of demand from institutional buyers.

"I have orders from institutional investors and clients," Francisco said.

Wilcon is scheduled to debut on the PSE on March 31. It shares will trade under the ticker symbol "WLCON" on the main board. The offer period will run from March 20 to 24.

The company hired First Metro Investment as issue manager, bookrunner and joint lead underwriter with BDO Capital & Investment Corp. for the IPO. RCBC Capital Corp. was hired as co-lead underwriter and Penta Capital Investment Corp. as participating underwriter. — VDS, GMA News

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