MANILA, Philippines - Max’s Group Inc., the operator of the biggest full-service restaurant chain in the country, has set the final offer price of its share sale scheduled to start next week at a reduced value.
The company said it has priced its offering of 197.18 million common shares at P17.75 apiece, lower than the previous ceiling of P21.75.
“The offer will raise gross proceeds of P3.5 billion. Of this amount, P3 billion will be used to reduce debt obligations incurred for the acquisition of Pancake House Inc., with the remainder applied to expand the current store network and fund capital expenditures,” the firm said.
In a text message to The STAR, Max’s Group director and chief finance officer Dave T. Fuentebella said the offering is “priced within reasonable market levels.”
Max’s Group said the size of the offer is “the most optimal for both the company and for investors,” even as the secondary shares held by existing shareholders are not being sold at this time.
Shares of principal shareholders issued in connection with the integration of the old Max’s Group of Companies with the new entity are subject to a lock-up agreement aimed to protect investors in the offer, the company said.
“We are excited to come to the Philippine equity capital market in a transaction that allows investors the ability to participate in the growth of a uniquely positioned and integrated restaurant business at this time. It presents a unique opportunity for both Max’s Group Inc. and our shareholders. We look forward to establishing another milestone in our over 70 year history of success”, said Robert F. Trota, Max’s Group president.
The offering will begin on Monday and will end next Friday, with the shares scheduled to be listed and traded on the Philippine Stock Exchange starting Dec. 12.
BPI Capital Corp. is acting as the bookrunner, issue manager and lead underwriter in the transaction, while BDO Capital Corp. is serving as senior co-lead underwriter.
The integration of the Pancake House Group with the Max’s Restaurant Group in June this year resulted in the country’s largest chained full-service restaurant group in terms of revenues and store network.
Max’s Group owns and operates restaurant brands Dencio’s, Kabisera ng Dencio’s, Teriyaki Boy, Sizzlin’ Pepper Steak, Le Coeur De France, Maple, and Yellow Cab.