initial public offerings

Figaro Coffee Group files for P1.77-billion IPO

Ralf Rivas
Figaro Coffee Group files for P1.77-billion IPO

IPO. A Figaro coffee shop in Tacloban City.

Figaro

Figaro plans to use the proceeds from the offer to fund store openings and renovations, debt repayment, and potential acquisitions

The Figaro Coffee Group on Thursday, November 4, applied for an initial public offering (IPO) worth P1.77 billion.

The Securities and Exchange Commission said Figaro plans to offer 1.26 billion common shares priced at P1.28 per share, with an overallotment option of up to 126 million shares.

Proceeds from the offer will be used to fund store openings and renovations, commissary expansion, debt repayment, IT infrastructure developments, and potential acquisitions.

Offer period is scheduled from December 16 to 22, while listing and trading on the main board of the Philippine Stock Exchange is set for December 31.

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

Figaro has a total of 90 stores nationwide, of which 52 are Figaro coffee shops, 31 Angel’s Pizza outlets, 5 Tien Ma’s Taiwanese Cuisine restaurants, 1 TFG Express outlet, and 1 Café Portofino outlet.

In the first six months of 2021, Figaro posted net sales of P847.3 million, 138.9% higher than in the same period in 2020.

Profits from January to June stood at P114.45 million, 271% higher than the year-ago level.

Figaro closed 8 stores during the COVID-19 pandemic, but delivery services helped the business continue to rake in profits.

Figaro has long planned its IPO, with reports dating back to as early as 2006. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.