Figaro to raise as much as P1.774 billion from December IPO

Figaro Coffee Group Inc. is seeking to raise as much as P1.774 billion from its planned initial public offering, which it will use to finance store openings, debt repayment, and potential acquisitions.

Based on its prospectus filed with the Securities and Exchange Commission (SEC), Figaro seeks to offer 1.260 billion common shares with an over-allotment option of up to 126 million at P1.28 apiece.

Total proceeds from the sale of firm shares are estimated at P1.612 billion and estimated net proceeds of P1.536 billion. Should the over-allotment option be exercised, the estimated total proceeds would amount to P1.774 billion.

Up to 378 million shares or 30% of the offering will be offered to trading participants of the Philippine Stock Exchange and to local small investors, and 252 million shares or 20% to all PSE trading participants.

At least 882 million firm shares or 70% will be offered for sale to certain qualified buyers and other investors in the Philippines by the joint issue managers, joint lead underwriters, and joint bookrunners.

Figaro has tapped Abacus Capital and Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp. as the joint issue managers, joint lead underwriters, and joint bookrunners for the offer.

The initial offer period is expected to be on December 16 to 22, 2021, with the shares to be listed and start trading on the PSE on December 31, 2021.

Should the over-allotment option be used, 39% of the proceeds or P657.60 million will be for store openings and renovations, 35% or P600.00 million for potential acquisitions, 21% or P350.30 million for commissary expansion, and 5% or P80 million for debt repayment.

Figaro Coffee Group. owns several intellectual property rights over its trademarks in the Philippines, including Figaro Coffee, Angel’s Pizza, and Tien Ma's.

The company ended the first six months of 2021 with revenues of P862.986 million, and total comprehensive income of P114.371 million. —KBK, GMA News