The Philippine Stock Exchange on Tuesday approved the P1.77-billion initial public offering of coffee chain Figaro Coffee Group Inc., the last company to list shares in 2021.
Figaro is majority-owned by businessman Jerry Liu, who also controls the listed semiconductor firm Cirtek Holdings Philippines Corp.
Figaro, according to the terms approved by the PSE, will sell 1.26 billion primary shares and up to 126 million in over-allotment shares at a price of up to P1.28 each.
The final price will be determined on Dec. 10, or once the company conducted its book building process.
The offering period is set from Dec. 16 to 22, while listing is tentatively set on Dec. 31. Figaro will use the proceeds from the IPO to fund store openings and renovations, commissary expansion, debt repayment, IT infrastructure developments and potential acquisitions.
Figaro operates 90 restaurants and branches nationwide, including 52 Figaro coffee shops, 31 Angel’s Pizza outlets, fivae Tien Ma’s Taiwanese cuisine restaurants, one TFG Express outlet and one Café Portofino outlet.
As part of its growth strategy, Figaro aims to have 150 system-wide stores by end-2022 and more than 300 system-wide stores throughout the country by end of 2029.
It plans to focus its 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 pleased that this year’s fund raising pipeline will be capped with an IPO. This shows that despite the pandemic, companies new to the stock market have the opportunity to raise capital through equity financing. We are looking forward to supporting FCG in its IPO as it aims to raise funds for expansion,” said PSE president and chief executive Ramon Monzon.
Ten percent of the offer shares will be reserved for local small investors who may subscribe to the IPO through the PSE EASy website or mobile application.
The company tapped Abacus Capital & Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. as joint issue managers, joint lead underwriters and joint bookrunners for the offering.