Shakey’s IPO gets SEC nod; target listing date on Dec. 15

The Securities and Exchange Commission (SEC) has approved a plan by Po family-led Shakey’s Pizza Asia Ventures Inc (Spavi), a leading full-service restaurant in the country, to raise up to P5.5 billion from a local stock market debut this year.

Based on documents released by the SEC on Friday, Spavi was given the green light to sell up to 352 million primary and secondary shares—including 46 million shares to meet excess demand—at a maximum price of P15.58 each.

The base offer will consist of 104 primary common shares and 202 million secondary common shares.

The offering, whose timetable is still subject to approval from the Philippine Stock Exchange, will bring to public hands about 23 percent of Spavi’s shares. Targeted listing date is on Dec. 15 this year.

Of the proceeds from the primary offering, P1.25 billion will be used for debt repayment, P137 million for commissary expansion and relocation of corporate headquarters and P111.8 million for working capital or potential acquisitions, based on the documents.

Spavi, which owns the rights to the Shakey’s trademark, holds the No. 1 position in the traditional full service pizza chain and family style casual dining categories. It is majority owned by the Po Family’s Century Pacific Group Inc (CPGI), parent company of Philippine listed Century Pacific Food Inc (CNPF).

The pizza chain has close to 180 stores all over the country, mostly in Luzon, catering to the A, B and upper C income segments. Spavi plans to expand to provincial areas, including Mindanao.

Apart from the Philippines, Spavi also owns perpetual rights to use the Shakey’s brand for the Middle East, Asia (excluding Japan and Malaysia), China, Australia and Oceania.

Meanwhile, Spavi has signed a limited-time, exclusive deal with UK-based Quorn Foods, world leader in meat alternatives, to offer the Philippines’ first meat alternative pizzas.

Quorn, which is now controlled by Philippine food firm Monde Nissin Corp., sells “healthy protein” using mycoprotein meat substitute, which is sold as ready made meals or in products that replicate burgers, sausages or chicken fillets. It has a market leading position in 15 countries, employing 620 employees in three UK sites, in Germany and in the United States.

With the new partnership, this “healthy protein” will be offered in pizza form in all of Shakey’s outlets nationwide.

Spavi president Vicente Gregorio said: “Shakey’s success has always been anchored in our mission to ‘wow’ our guests and exceed their expectations. Product innovation is one great way to do this.”