Shakey’s IPO priced at P11.26 per share
Pizza parlor chain operator Shakey’s Pizza Asia Ventures Inc. (SPAVI) priced its initial public offering (IPO) at P11.26 per share on Monday night, thus bringing the size of its stock market debut to a maximum of P3.96 billion.
Several industry sources privy to the share sale told the Inquirer that the IPO price-setting had been approved by the issuer and the arrangers on Monday evening ahead of the offering which will run from Dec. 2 to 8.
The offer price was cut from the earlier maximum price of P15.58 per share.
An investors briefing will be held in relation to this IPO on Thursday (Dec. 1).
Inaugural trading of SPAVI’s shares on the PSE is scheduled for Dec. 15. The company will trade under the ticker “PIZZA.”
SPAVI will offer 104 primary common shares and 202 million secondary common shares plus 46 million additional shares in case of excess demand.
BDO Capital & Investment Corp. and First Metro Investment Corp. are the lead underwriters for the transaction while BDO Capital is also the stabilizing agent.
Deutsche Bank AG is the sole global coordinator and sole bookrunner while Evercore acts as the financial adviser.
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.
SPAVI, which owns the rights to the Shakey’s trademark, holds the number one 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., parent company of leading canned food manufacturer 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.