Max’s Group Inc., formerly Pancake House Inc., is set to raise P4.6 billion from its planned follow-on offering of common shares to fund expansion, capital expenditures and debt repayments.
The company said it filed a registration statement yesterday with the Securities and Exchange Commission (SEC) in connection with its planned sale of common shares to the public, the date of which would be determined by the SEC.
“The final terms of the offer, including the number of shares to be offered to the public and the offer price will be determined following a book building process,” it said.
The P4.6 billion target consists of P4 billion from primary and secondary shares of the firm and its subsidiaries to fund “expansion of stores and commissaries, finance capital expenditures, working capital and other general corporate purposes,” as well as P600 million from over allotment option by shares of existing equity holders.
Max’s said part of the proceeds from the sale of subsidiaries’ equities will be used to repay a portion of the debt incurred during the acquisition process.
The company has appointed BPI Capital Corp. as bookrunner, issue manager and lead underwriter for the transaction.
In December 2013, Pancake House Holdings Inc. sold its 89.95 percent stake, or a total of 233.16 million shares at Pancake House, to the Max’s Group of Companies.
Max’s completed its Pancake House acquisition on February 24 and immediately assumed management and control of Pancake House. The company has changed its name to Max’s Group Inc. on August 22. It likewise changed its trading symbol from PCKH to MAXS.
As of end June, the firm has a total of 498 restaurants in the Philippines and 27 outlets abroad.
Max’s portfolio of restaurants include: Max’s Restaurant, Pancake House, Yellow Cab, Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Max’s Corner Bakery, Maple, Sizzlin’ Steak, and Le Coeur de France, as well as international brands that include Krispy Kreme, Jamba Juice, and The Chicken Rice Shop.