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Friday, March 29, 2024

SEC clears Shakey’s P5.5-b IPO

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The Securities and Exchange Commission on Friday approved the P5.5-billion initial public offering of restaurant chain operator Shakeys’s Pizza Asia Ventures Inc.

SPAVI will be the fourth company to conduct an IPO this year.

Documents filed with the SEC showed SPAVI would offer 352 million primary and secondary shares, including 46 million shares to cater to extra demand, at an offer price of up to P15.58 each.

Arran Investments Private Limited, a unit of  Singapore sovereign wealth fund GIC, agreed to sell 248 million secondary shares, assuming the over allotment option is exercised, which will reduce the company’s stake in SPAVI to 18.5 percent from the current 37.2 percent.

Documents showed at least 70 percent of the offer shares would be sold to overseas investors while the remaining 30 percent would be allocated to local investors.

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SPAVI’s maiden share offering will be held on Dec. 2 to Dec. 8, while listing was tentatively set on Dec. 15.

SPAVI will use the proceeds from the IPO to partially repay loans from BDO Unibank Inc., fund the construction of a new commissary and relocate its headquarters.

SPAVI had 177 stores all over the country as of end June and it plans to expand to other parts of the country.  At least seven more stores are expected to open before end of 2016 and 20 more in 2017.

The company plans to open 10 to 15 Shakey’s stores annually over the next five years to hit 200 to 250 stores.

Minimum investment for one store is between P15 million and P25 million.

Shakey’s, recognized globally as the original pizza franchise in the US, was first established in 1954. Shakey’s first opened in the Philippines in 1975 and became famous for thin crust pizzas and chicken and mojos.

SPAVI owns the rights to the Shakey’s trademark in the Philippines. The company is majority owned by the Po family, which is behind the Century Pacific Food Inc.

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