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AllHome to spend P3.6B on expansion, doubling market share


 

AllHome
AllHome vice chairperson holds a press conference at the Philippine Stock Exchange in Taguig City on Thursday, Oct. 10, 2019. The company debuted on the PSE after a successful P14.9-billion initial public offering.  Ted Cordero, GMA News

Newly-listed AllHome Corp. is spending P3.6 billion on expanding store network and doubling its market share in the home improvement retail industry by 2020.

“When we have 70 stores, we plan to double our market share from what it is now,” AllHome vice chairman Camille Villar told reporters on the sidelines of the company’s listing ceremony at the Philippine Stock Exchange in Taguig City on Thursday.

The Villar-led retailer has so far a market share of 7.1% with around 27 stores accounting for 215,000 square meters in retail space since it was formed in 2013.

AllHome is planning to close the year with additional 18 stores and add 25 more next year.

“Total capex is 3.6 (billion) for two years ... 2019 and 2020,” Villar said.

Sixty percent of AllHome’s new stores will be located in Mega Manila “because a lot of the demand is here,” she said. The rest will be spread across the country.

For its initial public offering (IPO), AllHome has raised P14.9 billion. Proceeds of the IPO will be used to fund the company’s capital expenditures and initial working capital for expansion, as well as debt repayment.

Around 10 stores out of the 25 to be constructed in 2020 will be sourced from the IPO, while the rest will be financed from internally-generated cash, Villar noted.

“The fresh capital raised will partially fund our store network rollout to 2020 as we take advantage of the various macroeconomic and improvement industry specific trends,” she said. —VDS, GMA News

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