Philippines' Shakey's pizza plans IPO to raise up to $156m

MANILA • The Philippine operator of Shakey's pizza parlour has filed for an initial public offering (IPO) that could raise as much as 5.5 billion pesos (S$156 million), the restaurant chain said late on Monday.

The share sale will be finalised next month, ahead of a possible listing in December, adding to a pipeline of public listings in the local bourse despite market volatility in South-east Asian markets.

Shakey's Pizza Asia Ventures Inc (Spavi), partly owned by sovereign fund GIC, plans to sell as much as 352 million primary and secondary shares at a maximum price of 15.58 pesos each.

Proceeds from the IPO will be used in expanding the in-house commissary and working capital requirements, including potential acquisitions and debt payments, the company said in a statement.

Spavi has built a network of 177 stores since opening the first branch in the country in 1975. It also owns perpetual rights to the Shakey's brand for the Middle East, Asia excluding Japan and Malaysia, China, Australia and Oceania.

Shakey's pizza franchise, which started in the United States in 1954, has more than 500 restaurants worldwide. Spavi appointed Deutsche Bank as the sole global coordinator and bookrunner for the IPO, while BDO Capital & Investment Corp and First Metro Investment Corp are joint-lead managers and underwriters.

The Philippines boasts an active IPO market despite volatility in South-east Asia.

REUTERS

A version of this article appeared in the print edition of The Straits Times on October 12, 2016, with the headline 'Philippines' Shakey's pizza plans IPO to raise up to $156m'. Print Edition | Subscribe