Max’s Group eyes P4.6B from share offering

MANILA, Philippines - Max’s Group Inc., formerly Pancake House Inc., intends to raise up to P4.6 billion from its proposed sale of common shares through a follow-on offering.

In a disclosure to the Philippine Stock Exchange (PSE), Max’s Group said it will use net proceeds from the primary offer to fund the expansion of stores and commissaries as well as to finance capital expenditures, working capital and other general corporate purposes.

As for the proceeds from the sale of shares by the company’s subsidiaries, Max’s Group said the amount will be utilized to repay a portion of the debt incurred from the acquisition of a controlling interest in the company.

The casual dining chain’s board earlier approved plans to sell 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 company said it eyes to indicatively raise P3.5 billion from the primary share tranche while selling shareholders is expected to indicatively raise P500 million from the secondary share tranche.     

It further said approximately P600 million could also be raised by existing shareholders, should over-allotment options on the secondary shares be fully exercised.

“While the transaction is expected to substantially increase the company’s free float to at least 30 percent after the completion of the offer, the family controlling the Max’s Group will remain the controlling shareholders of the company,” the Max’s Group said.

BPI Capital Corp. has been appointed as bookrunner, issue manager and lead underwriter for the transaction.

Max’s Group said timing of the offer will still depend on regulatory approvals and market conditions.

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

The company is currently in the process of changing its trading symbol on the PSE to MAXS from the current PCKH.

Max’s Group and its subsidiaries presently have a network of 498 outlets nationwide and 27 outlets abroad composed of brands Max’s Restaurant, Pancake House, Yellow Cab, Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Max’s Corner Bakery, Maple, Sizzlin’ Steak and Le Coeur de France.

The group also operates in the Philippines international food brands such as Krispy Kreme, Jamba Juice and The Chicken Rice Shop.