Sources: Medilines IPO disaster forces Figaro to delay own listing

Restaurant chain Figaro Coffee Group Inc. (FCG), which was supposed to close the curtain in the local initial public offering (IPO) market this year, deferred its debut to early 2022 in the aftermath of the Medilines Distributors Inc. listing debacle.

FCG wrote to the Philippine Stock Exchange (PSE) last Dec. 10 seeking a new timetable for its capital market foray. It was supposed to price the IPO last Friday, run the offering from Dec. 16 to 22 and then list on Dec. 31.The company said it was changing the schedule “in deference to the upcoming holiday season, specifically to ensure the timely completion of the documentary requirements of the investing public for the offer.”

Pricing is now set for Dec. 22, while the offer period will run from Jan. 10 to 14. Instead of New Year’s Eve listing, FCG plans to debut on the trading floor on Jan. 24.

Industry sources said concerns on the possible fallout from the selldown of Medilines prompted FCG to reschedule its public offering.

The PSE earlier approved its IPO of up to P1.77 billion. FCG will sell up to 1.386 billion common shares at a maximum price of P1.28 per share. The base offer consists of 1.26 billion shares plus an additional 126 million common shares in case of excess demand.

All of these are primary shares, which means all proceeds will go the company to fund its expansion plans.

Ten percent of FCG’s firm offer shares will be reserved for local small investors, who may subscribe to the IPO through the PSE EASy website or mobile application.

Net proceeds from the offering will fund new store openings and renovation, commissary expansion, debt repayment, IT infrastructure and potential acquisitions in the coming years. The firm also aims to scale up its TFG Express or multibrand kiosk concept as well as its online product distribution channels.

It also seeks to reactivate business with major institutional clients and continue investing in research and development for new formulations, recipes and products.

The offering will bring up to 27.66 percent of FCG’s shares to public hands. Its market capitalization is expected to hit P6.4 billion.

Abacus Capital & Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. are joint issue managers, lead underwriters and bookrunners for this capital-raising. INQ