FIGARO COFFEE Group, Inc. (Figaro Group) has filed its registration statement with the Securities and Exchange Commission (SEC) for a P1.77-billion initial public offering (IPO).
According to its prospectus dated Oct. 24, the company plans to offer up to 1.26 billion common shares for P1.28 per share to the public, with an overallotment option of up to 126 million shares.
The Figaro Group (TFG) is eyeing to conduct the offer period from Dec. 16 to Dec. 22, while its listing and trading at the main board of the Philippine Stock Exchange is set on Dec. 31.
The proceeds from the offer will be used to fund future store launches and renovations, commissary expansion, debt repayment, investments in IT infrastructure, as well as potential acquisitions.
Figaro Group plans to use P657.6 million of its proceeds to fund store openings and renovations and P350.30 million for its commissary expansion.
“As part of our growth plans, we plan to have a total of about 150 system-wide stores by the end of 2022 and more than 300 system-wide stores throughout the country by the end of 2029,” the company said.
Figaro Group is the firm behind food retailers such as Figaro Coffee, Angel’s Pizza, and Tien Ma’s Taiwanese Cuisine. It also operates one TFG Express kiosk and one Café Portofino outlet.
As of Sept. 17, Figaro Group said it has a total of 90 branches. The company operates 52 Figaro Coffee shops, 31 Angel’s Pizza outlets, five Tien Ma’s Taiwanese cuisine restaurants, one TFG Express kiosk, and one Café Portofino outlet.
Figaro Group also plans to spend P600 million to acquire other foodservice businesses in the next three years.
“We are still in the early stages of studying and evaluating these potential acquisitions, which are intended to accelerate our growth, expand our business segments, and add value to our brands and product offerings,” the company said.
Figaro Group will also use approximately P80 million of the IPO proceeds to settle short-term financial obligations incurred by a subsidiary through loans, which were used for additional working capital.
It will also spend P5 billion on IT infrastructure development to upgrade its enterprise resource planning systems and improve the system integration of its stores, among others.
The company has tapped Abacus Capital & Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp. to be the joint issue managers, joint lead underwriters and joint bookrunners of the offer. — Keren Concepcion G. Valmonte