Listed food chain operator Max’s Group Inc. (MGI) will announce the price for its follow-on share offering on November 26.
“Subject to the necessary regulatory approvals, the final offer price is expected to be set on November 26 with the offer period scheduled [for]December 1 to 5. The listing of the shares on the Philippine Stock Exchange is scheduled for December 12,” MGI said in a statement.
The company plans to raise P4.6 billion from the follow on offer of 300.14 million common shares.
The Securities and Exchange Commission has approved the follow on offer on November 20.
The estimated P4.43-billion net proceeds will be used to repay a portion of the debt incurred during the acquisition process (P3.9 billion), and for capital expenditures for store and commissary expansion, as well as working capital for 2015 (P500 million).
MGI borrowed P4.3 billion from the Bank of the Philippine Islands to acquire 233.16 million shares or 89.95-percent controlling stake in the former Pancake House Inc. The loan has an interest rate of 5.5556 percent per annum, due February 2021.
The offer shares may be subscribed at a minimum of 200 shares. BPI Capital Corp. serves as bookrunner, issue manager and lead underwriter for the offer, while BDO Capital & Investment Corp. will act as senior co-lead underwriter.
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.