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Max’s chain eyes P4.6B via new issue

/ 05:11 AM August 29, 2014

MANILA, Philippines–Leading casual dining restaurant chain Max’s Group Inc. is planning a P4.6 billion follow-on offering after its landmark consolidation with publicly listed Pancake House Inc., bringing to public hands about 30 percent of its shares.

In a press statement on Thursday, Max’s said it had filed a registration statement with the Securities and Exchange Commission in connection with a planned offer and sale to the public of common shares in a follow-on offering.


Following the integration of the Max’s Group, the company changed its corporate name to Max’s Group Inc. on Aug. 22 and is in the process of changing its PSE ticker symbol from “PCKH” to “MAXS.”

It was earlier announced that Max’s would tap the local capital market with an offering of as much as 300.136 million common shares.

The final terms of the offer, including the number of shares to be offered to the public and the offer price, will be determined following a book building process, the company said. It added that Max’s and its subsidiaries would indicatively raise P3.5 billion from the primary share tranche, while selling shareholders would likely raise P500 million from the secondary share tranche.

About P600 million could also be raised by existing shareholders through an overallotment option.

The combination between Pancake and Max’s brings under one roof heritage restaurant brands such as: Max’s Restaurant and Pancake House, as well as 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 Krispy Kreme, Jamba Juice and The Chicken Rice Shop.

Altogether, the company and its subsidiaries have a network of 498 outlets nationwide and 27 outlets abroad.

Net proceeds from the primary offer will be used to fund the expansion of stores and commissaries, finance capital expenditures, working capital and other general corporate purposes. Proceeds from the sale of shares by the subsidiaries will be used to repay debts incurred when they acquired a controlling interest in the company.

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

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TAGS: follow-on offering, fund raising, Max’s Group, Pancake house, shares
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