Shares of restaurant group Figaro Coffee Group Inc. (FCG) firmed up by 2.67 percent on its first day of trading at the local stock exchange on Monday, bringing to investors a new food retailing play amid the country’s resilient consumer space.
FCG, the second company to debut on the Philippine Stock Exchange (PSE) this year, closed at 77 centavos per share compared with its initial public offering (IPO) price of 75 centavos per share. It bucked the overall market downturn that dragged down the main share PSE index by 0.56 percent.
About P584.74 million worth of FCG shares changed hands yesterday.
The company raised P767 million from the equity deal, which it said it would use to fund new store openings and renovation, commissary expansion, debt repayment, IT infrastructure and potential acquisitions in the coming years. It also aims to scale up its multibrand kiosk concept and online product distribution channels.
No new listings
PSE president Ramon Monzon said he was happy to see a second company brave the stock market so early in the year, noting there had been no new listings in the month of January in the last two decades.
“The successful completion of Figaro Coffee Group’s maiden share sale demonstrated investor confidence in the products and prospects of the company’s food and beverage brands, as well as its strategic objectives to further grow its business,” Monzon said.
4th highest
He said the local small investor (LSI) tranche of the offering had been well-received, with LSIs from 51 provinces and countries subscribing to 94 percent of the shares earmarked for the sector.
The percentage takeup of Figaro’s LSI tranche is the fourth highest out of the 17 companies that have so far used the PSE’s electronic booking platform, Monzon said.
“We are very happy that our IPO generated strong interest from institutional and public investors. We are also grateful to the strong support of the banking community as this reflects their confidence in the food industry, especially in FCG’s subsidiary, Figaro Coffee Systems Inc., a company that has over 25 years of experience,” said FCG chair Justin Liu.