SHAKEY’S Pizza Asia Ventures Inc (SPAVI), the local franchisee of Shakey’s pizza parlor in the Philippines, is looking to raise up to P5.5 billion through an initial public offering (IPO) likely in December this year.
SPAVI said late Monday that it filed its IPO prospectus with the Securities and Exchange Commission (SEC), indicating its planned maiden share sale of up to 352 million primary and secondary shares, plus an oversubscription option of 46 million shares, at a maximum price of P15.58 each.
The offer price is expected to be finalized in November ahead of a possible listing in December this year.
Deutsche Bank AG was appointed as the sole global coordinator and bookrunner for the IPO, with BDO Capital and Investment Corp. and First Metro Investment Corp. as joint lead managers and underwriters.
Evercore is acting as exclusive financial adviser to SPAVI.
“We intend to use the offer proceeds for the expansion of our in-house commissary, working capital requirements, potential acquisitions, and repayment of debt,” SPAVI said late Monday.
SPAVI’s in-house commissary supplies bulk of its proprietary pizza dough and crust used to create Shakey’s trademark Thin Crust pizza.
Shakey’s, recognized globally as the original pizza franchise in the U.S., was first established there in 1954 and is best known for “the pizza that started it all”. Shakey’s first opened in the Philippines in 1975 and is famous for its Thin Crust pizzas and its Chicken & Mojos.
SPAVI, who owns the rights to the Shakey’s trademark locally, is in the top spot in the traditional full service pizza chain and family style casual dining categories.
As of end-June, it operated 177 stores nationwide, with plans to add seven more stores before the end of the year. It also plans to open 20 more new stores next year to be located in the greater Manila and provincial areas.
Formerly International Family Food Services Inc., SPAVI earlier announced its five-year expansion plan from 2016 to 2020, earmarking P1.3 billion to put up at least 50 company owned stores and 30 franchised outlets, to raise store count to up to 250 branches by 2020.
Apart from the Philippines, the company also owns perpetual rights to the Shakey’s brand for the Middle East, Asia (excluding Japan and Malaysia), China, Australia, and Oceania region.
SPAVI is majority owned by the Po Family’s Century Pacific Group Inc. (CPGI), which is the parent company of listed tuna canner Century Pacific Food Inc. (CNPF).
Earlier this year, CPGI and GIC, Singapore’s sovereign wealth fund, partnered to acquire majority of the pizza business from the Prieto family, which continues to hold a minority stake in SPAVI.