Pancake House plans to raise P12.6 B via follow-on offering

MANILA, Philippines - Pancake House Inc., soon to be renamed as Max’s Group Inc., is planning to raise about P12.6 billion through the sale of 300.136 million common shares via a follow-on offering.

In a disclosure to the Philippine Stock Exchange, Pancake House said its board has approved and authorized the sale of up to 300.136 million common shares composed of up to 34.106 million new shares, up to 204.638 million issued shares held and to be sold by certain wholly-owned subsidiaries, and up to 61.391 million issued shares to be sold by certain selling shareholders.

“The board also authorized the filing of a registration statement for the follow-on offer with the Securities and Exchange Commission and an application for the listing of the new shares that form part of the offer with the Philippine Stock Exchange,” Pancake House said.

The company did not disclose when it plans to conduct the follow-on offer. The amount expected to be raised from the share sale was based on Pancake House’s stock price of P42.

Last month, the Max’s Group was folded into Pancake House in a P4-billion reverse acquisition that cemented the group’s position as the largest casual dining chain in the Philippines.

Pancake House reported that it was also changing its name to Max’s Group to reflect the latter’s takeover of the listed casual dining chain.

Likewise, the company will also be changing its trading symbol on the Philippine Stock Exchange to MAXS from the current PCKH.

During the first six months of the year, the listed restaurant chain posted a net loss of P36.6 million due to higher expenses that offset higher revenues.

Pancake House as of end-June had 303 co-owned, joint-venture and franchised stores: 114 Pancake House, 15 Dencio’s Bar and Grill, 35 Teriyaki Boy, 16 Sizzlin’ Pepper Steak, 14 Le Coeur de France, two Chicken Rice Shop, 104 Yellow Cab and three Maple.