Figaro Coffee Group Inc. said Friday it is raising fresh capital to fund expansion plans.
Figaro said in a disclosure to the stock exchange its board approved plans to sell up to 20 percent of the company’s outstanding common shares to third-party investors.
The primary shares will be issued out of the company’s existing authorized capital stock. The company has 5.468 billion outstanding shares.
Based on the stock’s closing price of P0.77 per share on Thursday, the sale of 1.09 billion shares, representing 20 percent of company’s outstanding shares, would generate roughly P800 million in fresh capital.
Figaro’s board also approved the conduct of a follow-on offering of either common shares or preferred shares over the next three years.
Figaro, whose main business unit operates and franchises a network of retail restaurants, said it would use the proceeds from the follow-on offering and sale of shares to strategic investors to fund store openings and expansion beyond 2024.
It has yet to finalize the terms and conditions of the fund-raising activities, saying this would depend on business needs and prevailing market conditions.
It said it would seek shareholders’ approval for the proposed transactions during the company’s annual stockholders meeting in December.
Food manufacturer Monde Nissin Corp. earlier acquired a 15-percent stake in Figaro for P820 million.
Figaro through its unit Figaro Coffee Systems Inc. operates Figaro Coffee, Angel’s Pizza, Tien Ma’s, The Figaro Group Express outlet and Cafe Portofino.