Max’s Group to raise P3.5B from revised follow-on offering

MANILA, Philippines – Max’s Group Inc has lowered its follow-on offer at P17.75 ($0.40*) per share, which is at the low end of its earlier price range of P17.50 ($0.39) to P21.75 ($0.48).

The Philippine Stock Exchange on November 26 also approved the follow-on offering of Max’s Group.

At P17.75 ($0.40*) per share, the company will raise as much as P3.5 billion ($78.03 million) from the sale of 197.183 million shares.

Out of the projected proceeds, P3 billion ($66.88 million) will be used to reduce debt obligations incurred for the acquisition of Pancake House, Inc.

The remaining balance from the expected proceeds will be used to expand the current store network and fund capital expenditures.

The offer period will be from December 1 to 5, and the listing date has been set on December 12.

However, the existing shareholders have decided not to participate in the offering, Max’s Group said.

Max’s Group president Robert Trota said they are excited to come to the Philippine equity capital market in a transaction that allows investors the ability to participate in the growth of a uniquely positioned and integrated restaurant business at this time.

“It presents a unique opportunity for both Max’s Group Inc and our shareholders. We look forward to establishing another milestone in our over 70-year history of success,” Trota said.

As of end-June 2014, the restaurant chain operates 525 stores across 11 brands: Dencio’s, Le Coeur de France, Maple, Max’s Restaurant, Pancake House, Sizzlin’ Steak, Teriyaki Boy, and Yellow Cab. It also operates in the country international food brands like Jamba Juice, Krispy Kreme, and The Chicken Rice Shop.

It has 27 outlets in the United Staes, Canada, the Middle East, and Malaysia.

Maxs Group’s store count is expected to reach 630 to 640 outlets by end-2014. – Rappler.com


*$1 = P44.86