Pizza chain seeks to raise P3.96-B in fresh funds
SHAKEY’S Pizza Asia Ventures Inc. (SPAVI), the Philippine operator of international pizza chain Shakey’s, priced its initial public offering (IPO) at P11.26 per share or at the top end of the indicative range, one of the underwriters of the maiden offering said on Tuesday.
Ed Francisco, president of BDO Capital & Investments Corp., one of the joint lead managers and underwriters of the SPAVI offering, confirmed in a text message that the IPO price was set at P11.26 each, which is at the top end of the P10.70 to P11.26 indicative range reported by Thomson Reuters publication IFR Asia last week.
First Metro Investment Corp is joint lead manager and underwriter of the SPAVI IPO together with BDO Capital, while Deutsche Bank AG was appointed as the sole global coordinator and bookrunner and Evercore is acting as exclusive financial adviser to SPAVI.
SPAVI is set to offer 352 million shares, including an oversubscription option of 46 million shares, from December 2 to 8. Listing of the shares on the Philippine Stock Exchange is set on December 15 with the ticker symbol PIZZA.
This will be the fourth IPO on the local bourse for 2016 after Golden Haven Memorial Park Inc’s P778 million IPO in June, Cemex Philippines Holdings Corp. in July (P25 billion), and Pilipinas Shell Petroleum Corp. last November 3 (P18.425 billion).
More than 80 percent of SPAVI’s IPO proceeds will be used to repay debts while the rest will be allotted for capital expenditures and potential acquisitions.
Formerly International Family Food Services Inc., SPAVI owns the rights to the Shakey’s trademark locally and operates 177 stores nationwide as of end-June, with plans to add seven more stores before the end of the year and 20 new stores next year.
It 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.