Coffee and restaurant chain operator Figaro Coffee Group Inc. plans to raise P1.77 billion through an initial public offering as it aims to more than double its store network over the next eight years.
Figaro said in a filing with the Securities and Exchange Commission it planned to sell 1.26 billion primary common shares with an over-allotment of 126 million common shares at P1.28 apiece.
It said it would use the net proceeds from the maiden share offering to fund store and commissary expansion, outlet renovation, debt repayment and potential acquisitions.
Figaro operates 90 restaurants and branches nationwide, including 52 Figaro coffee shops, 31 Angel’s Pizza outlets, five Tien Ma’s Taiwanese cuisine restaurants, a TFG Express outlet and a Café Portofino outlet.
Figaro said that as part of growth plans, it planned to have 150 system-wide stores by the end of 2022 and more than 300 system-wide stores throughout by the end of 2029.
It plans to focus store openings in National Capital Region, Bulacan, Laguna, Cavite, Pampanga and Batangas.
Figaro is also looking to acquire other food service businesses within the next three years.
“We are still in the early stages of studying and evaluating these potential acquisitions which are intended to accelerate our growth, expand our business segments and add value to our brands and product offerings,” the company said.
Figaro will have a market capitalization of P6.25 billion, based on the indicative price of P1.28 per share.
It set the offer period on Dec. 16 and the listing date on Dec. 31, 2021.
The company hired Abacus Capital and Investments Corp., China Bank Capital Corp. and PNB Capital and Investments Corp. as joint issue managers and lead underwriter for the offering.
Despite the pandemic, the country experienced a slew of IPOs this year and emerged as one of Southeast Asia’s top markets for IPOs.
Among the companies that went public this year are real estate investment trust firms DDMP REIT Inc., Filinvest REIT Inc., RL Commercial REIT Inc. and MREIT Inc., Monde Nissin Corp. and AllDay Marts Inc.
Another privately-held company, Medilines Disributors Inc., also plans to go public this month.
