MANILA, Philippines – Share price of Shakey’s Pizza Asia Ventures Incorporated sizzled during its debut at the Philippine Stock Exchange (PSE), rising by 7.5% despite the market’s steep decline on the US Federal Reserve rate hike.
Listing on Thursday, December 15, with the stock symbol “PIZZA,” Shakey’s opened at a high of P12.36 versus its initial public offering (IPO) price of P11.26 per share, before closing at P12.10 apiece. This made it the most actively traded stock and one of the top advancers for the day.
In an interview after the listing ceremony, Shakey’s president and chief executive Vicente Gregorio said the company plans to have 250 to 300 stores over the next 3 to 5 years.
He said the company will end 2016 with a total of 184 stores while 20 new stores are in the pipeline for 2017.
After 2017, Gregorio said the company plans to open an average of 12 to 15 stores annually. Average investment for each store is P20 million.
While the company is the leading full-service pizza chain in the country, with more than 26% market share, Gregorio said there are still great expansion opportunities in areas outside Metro Manila, particularly in the Visayas and Mindanao.
He added that Shakey’s has signed a franchise agreement with Kuwaiti partners, involving the opening of 10 Shakey’s stores in Kuwait over the next 7 years. The first store in Kuwait is expect to open in the first half of 2017.
Aside from the Philippines, Shakey’s also owns perpetual rights to the Shakey’s brand for the Middle East, Asia (excluding Japan and Malaysia), China, Australia, and Oceania.
Owned by the Po family, the pizza chain plans to use the proceeds from the IPO to partially repay its loan from BDO Unibank Incorporated, fund the capital expenditures of its new commissary, and relocate its headquarters. – Rappler.com