MANILA, Philippines – Pizza chain Shakey's Pizza Asia Ventures Incorporated (SPAVI) set its final offer price for its planned initial public offering (IPO) to P11.26 per share.
With this IPO price, SPAVI will raise as much as P3.96 billion in proceeds from the sale of 351.9 million common shares.
Under the plan, SPAVI will sell 104 million primary shares and 202 million secondary shares held by Arran Investment Private Limited, a unit of Singapore sovereign wealth fund GIC.
Another 45.9 million shares will be set aside for overallotment.
The offer period will be from December 2 to December 8, while listing date has been tentatively set on December 15.
Deutsche Bank AG had been appointed sole global coordinator and bookrunner for the deal, with BDO Capital and Investment Corporation as well as First Metro Investment Corporation as joint lead managers and underwriters.
At least 70% of the offer shares will be sold to overseas investors, while the remaining 30% will be set aside for local investors.
SPAVI said it plans to use the proceeds from the sale of primary shares to partially repay its loan from BDO Unibank Incorporated and to fund the capital expenditures of its new commissary as well as the relocation of its headquarters.
Over the next 5 years, the company plans to open 10 to 15 Shakey's stores annually.
Minimum investment for one store is between P15 million and P25 million.
Shakey's, which first opened in the Philippines in 1975, has since grown to 177 stores as of June 2016.
Seven more are expected to open before the end of the year while 20 new stores are in the pipeline for 2017.
Aside from the Philippines, SPAVI also owns perpetual rights to the Shakey's brand for the Middle East, Asia (excluding Japan and Malaysia), Australia, and Oceania.
SPAVI will be the 3rd listed company of the Po family. The two others are canned food manufacturer Century Pacific Food Incorporated and property firm Arthaland Corporation.
SPAVI will also be the 4th company to list with the local bourse this year after Golden Haven Memorial Park Incorporated, Cemex Holdings Incorporated, and Pilipinas Shell Petroleum Corporation. – Rappler.com