The Market Monitor Minding the Nation's Business
Shakey’s Pizza Asia Ventures Inc (SPAVI), the operator of the Shakey’s pizza chain of stores, is targeting to raise up to P5.5 billion through an initial public offering this year.
SPAVI filed a prospectus with the Securities and Exchange Commission (SEC) to sell up to 352 million primary and secondary shares, including 46 million shares to cater for extra demand, at a maximum price of P15.58 each. The offer price is expected to be finalized in November ahead of a possible listing in December 2016.
SPAVI is majority owned by the Po Family’s Century Pacific Group Inc (CPGI), parent company of Philippine listed Century Pacific Food Inc (CNPF).
Earlier this year, CPGI and GIC, Singapore’s sovereign wealth fund, partnered to acquire majority of the pizza business from the Prieto family, which continues to hold a minority stake in SPAVI.
“We intend to use the offer proceeds for the expansion of our in-house commissary, working capital requirements, potential acquisitions, and repayment of debt,” the company said.
SPAVI’s in-house commissary supplies the bulk of its proprietary pizza dough and crust used to create Shakey’s trademark thin crust pizza.
Shakey’s, recognized globally as the original pizza franchise in the US, was first established in 1954 and is best known for “the pizza that started it all”. Shakey’s first opened in the Philippines in 1975 and is famous for its thin crust pizzas and its iconic chicken and mojos.
Locally, where SPAVI owns the rights to the Shakey’s trademark, the Company holds the number one position in the traditional full service pizza chain and family style casual dining categories.
It had 177 stores all over the country as of June 2016, with plans to expand in the greater Manila and provincial areas. 7 more stores are expected to open before the end of 2016, with 20 more new stores in the pipeline for 2017.
Apart from the Philippines, the company also owns perpetual rights to the Shakey’s brand for the Middle East, Asia (outside Japan and Malaysia), China, Australia, and Oceania.
Deutsche Bank AG had been appointed sole global coordinator and bookrunner for the deal, with BDO Capital and Investment Corporation and First Metro Investment Corp. as joint lead managers and underwriters.
Evercore is acting as exclusive financial adviser to SPAVI.