Casual dining business operator Gweilo Corp. has secured approval from the Securities and Exchange Commission (SEC) for an initial public offer (IPO) of 95 million primary shares priced at a maximum of P1 each, the regulatory body said on Wednesday.
Net proceeds are expected at P87.46 million after deducting listing-related expenses and taxes, the SEC said in an email to the media.
It is the second IPO approval granted by the SEC so far this year.
The offer shares were raised to 95 million from the initially registered 75 million. The company has total common shares of 179.22 million. After the IPO, the company will conduct a 53-percent public float.
The Gweilo shares will be offered from June 1 to 15, and then listed on the Philippine Stock Exchange (PSE) on June 23, according to the target. Asian Alliance Investment Corp. will serve as issue manager and underwriter.
The net proceeds will be used for the expansion of company-owned Mario’s Kitchen outlets (P36.23 million), renovation of outlets (P8.9 million), franchise show (P1.9 million), commissary expansion and renovation (P15.26 million), starting up a catering service (P7.55 million), implementing a unified IT system in stores (P4.44 million), research and development (P2.9 million) and working capital (P10.11 million).
In 2014, the company’s net income rose to P2.14 million from P2 million a year earlier as revenue grew to P71.08 million from P58.23 million in 2013.
Incorporated in 2001, Gweilo operates brands such as Gweilo’s Bar, Mario’s Kitchen, Galleon by Mario’s Kitchen, Grab and Go, and Daddy O’s via company-owned units and franchise deals.
Prior to Gweilo, Crown Asia Chemicals Corp. obtained IPO approval from the SEC for its P222-million share offer in April and debuted on the PSE.
Other companies expected to tap the stock market this year are the Company of Friends Inc.(ProFriends) (P7.7 billion), Green Power Panay Philippines Inc. (P290 million); the follow-on offering of Global Ferronickel (P32 billion); as well as the backdoor listings of National Book Store Inc. via Vulcan Industrial Mining Corp. and LBC Express Inc. via Federal Resources Investment Group Inc.
The PSE sees nine to 10 companies listing on the exchange this year.