LISTED casual dining restaurant operator Max’s Group Inc. (MGI) has lowered the price of its follow on offering to P17.75 per share from the original ceiling of P29.50 and reduced the size of the share sale by about a third.
In a statement, the company said the final price for the 197.18 million common shares to be offered is “the most optimal for both the company and for investors.”
The company had originally planned on offering 300.14 million common shares.
The offering will run from December 1 to 5, and the shares will be listed on the Philippine Stock Exchange on December 12.
The company hopes to raise P3.5 billion from the offering or P1.1 billion lower than its previous target because of the revised offer price.
“We are excited to come to the Philippine equity capital market in a transaction that allows investors the ability to participate in the growth of a uniquely positioned and integrated restaurant business at this time. It presents a unique opportunity for both Max’s Group, Inc. and our shareholders,” said Robert Trota, MGI president.
“We look forward to establishing another milestone in our over 70-year history of success,” he added.
The offered shares may be subscribed at a minimum of 200 shares.
BPI Capital Corp. serves as the bookrunner, issue manager and lead underwriter for the offer, while BDO Capital & Investment Corp. acts as the senior co-lead underwriter.
MGI said P3 billion of the proceeds will be used to reduce debt obligations incurred for the acquisition of Pancake House Inc., and P500 million will fund expansion projects and capital expenditure.
As of end-June, MGI had 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 Krispy Kreme, Jamba Juice and The Chicken Rice Shop.