Wilcon opens up 5% in market debut

Wilcon Depot Inc. opened at P5.30 per share on Friday, its first day of trading on the Philippine Stock Exchange, up 4.95 percent from an initial public offering (IPO) price of P5.05 per share.

As of 11:23 a.m., Wilcon was trading up 4.16 percent at P5.26 per share despite  market volatility as foreign funds continue to exit the market.

The construction and home improvement materials retailer debuted on the main board, under the ticker symbol WLCON.

"Reception has been positive, thus far, based on value turnover. And it is one of the few issues in the green, while the market as a whole is down," Luis Limlingan, business development head at Regina Capital Corp., told GMA News Online.

"Investors are starving for a new IPO, and this is the first of the year," Limlingan said.

Al the close of trading, Wilcon shares were up 5.54 percent at P5.33 per share.

BDO Capital & Investment Corp. President Eduardo Franciso noted the positive reception was due to investors' confidence.

"That's the beauty of a deepening local market. We are more resilient and unlike foreign investors who are at times easily spooked," Francisco said.

The company sold 1.393 billion primary shares at P5.05 per share, raising as much as P7.03 billion during the offer period from March 20 to 24.

Wilcon plans to use the proceeds from its IPO to fund store network expansion in the next five years.

"Wilcon is benefiting from the surging property and construction sector, that's why it was welcomed positively by the market," Astro del Castillo, managing director at First Grade Finance Inc., said. — VDS, GMA News