Restaurant chain Figaro Coffee Group Inc. has set the final price for its initial public offering (IPO) at P0.75 per share to raise P767.4 million.
The final price is 41.4 percent lower than the initial maximum level of P1.28.
Figaro has also reduced the offered shares to 930.166 million in primary shares plus an over allotment of 92.016 million common shares.
Figaro, according to an earlier filing with the Securities and Exchange Commission, had planned to sell 1.26 billion in primary shares and up to 126 million over-allotment shares.
It set the offering period from January 10 to 14, 2022 scheduled the listing date on the main board of the Philippine Stock Exchange on January 24, 2022.
Figaro will use the net proceeds from the offering to fund store openings and renovations, commissary expansion, debt repayment, IT infrastructure developments and potential acquisitions.
Figaro as of November 2021 operates 99 stores, namely 55 Figaro coffee shops, 35 Angel’s Pizza outlets and five Tien Ma’s Taiwanese cuisine restaurants. It also runs three TFG Express outlet and one Café Portofino store.
It plans to increase the network to 150 stores by the end of 2022 and to 300 outlets by the end of 2029.
Figaro registered a net income of P114.4 million in the first six months of 2021, up 271 percent from P30.85 million year-on-year.
First-half net revenues jumped 139 percent to P847.3 million from P354.6 million a year ago.
Figaro attributed the higher sales largely due to the rollout of additional outlets and higher same-store-sales growth.
The company has engaged Abacus Capital & Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. as joint issue managers, lead underwriters and book-runners of the fund raising activity.
Figaro is a purely Filipino and home-grown diversified food group with over 25 years of experience in the industry.
The restaurant chain is one the two companies that are planning to conduct an IPO in January next year. The other one is residential developer Haus Talk Inc., which is raising P750 million from the maiden share offering.