UPDATE 2-Philippines' AllHome prices IPO at low end of guidance

* AllHome IPO set to raise $285 mln
* Largest Philippine IPO in three years
* Philippines among top performing stock markets in SEAsia

(Adds fund manager comments, context)
By Neil Jerome Morales and Anshuman Daga
MANILA/SINGAPORE, Sept 26 (Reuters) - Philippine home
furnishing retailer AllHome Corp HOME.PS on Thursday priced
its initial public offering (IPO) at the low end of its
indicative range, at a time when the local IPO market is showing
signs of picking up.
The deal comes at a challenging time for brick-and-mortar
retailers as shoppers increasing shift online, while home
furnishing competition in the capital Manila, where most of
AllHome's stores are located, is likely to intensify with the
Philippine arrival next year of Sweden's IKEA AB IKEA.UL .
AllHome will sell shares at 11.50 pesos ($0.22) each, versus
guidance of 11.50 pesos to 14 pesos, the company said in a
notice to the stock exchange, confirming a Reuters report
earlier on Thursday.
AllHome's IPO could raise up to $285.35 million, the largest
Philippine deal since the $380 million maiden share sale of
Pilipinas Shell Petroleum Corp SHLPH.PS in October 2016.
The books for AllHome's IPO were multiple times covered at a
higher price but the company opted for the lower price to
increase the attractiveness of the stock when listed, said
people with direct knowledge of the matter, who declined to be
identified as they were not authorised to speak to the media.
The Philippine stock market is among Southeast Asia's top
performers this year, up about 5.7%, though momentum has stalled
somewhat in recent months.
Noel Reyes, chief investment officer of Security Bank Corp,
said riskier assets such as shares are being weighed down by
external factors, including the spreading impact of a Sino-U.S.
trade war characterised by tit-for-tat import tariffs.
"For the IPO to fly, Allhome has to give additional
potential returns," Reyes told Reuters.
The retailer is owned by Manuel Villar, a former
presidential candidate and the Philippines' richest man, who
also has interests in banking, gaming, real estate and
utilities.
Philippine firms are increasingly tapping the capital
markets this year compared with 2018 when there was just one IPO
that raised about $150 million. AllHome is the third domestic
IPO this year.
More Philippine companies are set to launch IPOs later this
year. Early this month, the hospital unit of Metro Pacific
Investments Corp MPI.PS filed for an IPO that could raise up
to 83.33 billion pesos ($1.59 billion). AllHome's final IPO price gives the firm a valuation of
about $826 million.
New capital from the sale of up to 1.29 billion shares
including an over-allotment option will fund store expansion and
debt payments. AllHome currently operates 25 home improvement
stores mostly in the capital Manila.
AllHomes tapped UBS as the sole global co-ordinator, and
joint bookrunner with CLSA and Credit Suisse. China Bank Capital
and PNB Capital are the local underwriters.
($1 = 52.14 Philippine pesos)