The Securities and Exchange Commission (SEC) has approved the Liu-led Figaro Group Inc.’s initial public offering (IPO) and the P3-billion preferred shares offering of Po-led property developer Arthaland Corp.
Figaro, which will also include its stable of restaurants, will offer to the public up to 1.26 billion common shares up to P1.28 per share, with an overallotment option of up to 126 million shares. The shares will be listed and traded on the main board of the PSE.
The company expects to net up to P1.69 billion from the offer, assuming the overallotment option is fully subscribed. Proceeds will be used for store openings and renovations, commissary expansion, debt repayment, IT infrastructure developments, and potential acquisitions.
The Liu-led company primarily operates restaurants, coffee shops, and refreshment parlors under the brands.
Figaro will include its brands Angel’s Pizza, Figaro Coffee, Tien Ma’s, TFG Express and Café Portofino, in its IPO. It currently owns a total of 90 stores across the five brands.
“As part of our growth plans, we plan to have a total of about 150 system-wide stores by the end of 2022 and more than 300 system-wide stores throughout the country by the end of 2029. As part of our store network expansion plan, we consider the viability of potential locations subject to various factors such as market and economic conditions, and results of our operations and performance,” the company said.
The company said it will expand its company-owned stores for the next three years. For Angel’s Pizza, it will expand to viable locations in Metro Manila, Bulacan, Laguna, Cavite, Pampanga and Batangas, with 35 company-owned stores.
For Figaro Coffee, it will expand to six locations mostly in Metro Manila including malls, hospitals and mixed-use areas or central business districts and also Metro Manila for Tien Ma’s, with two more branches and TFG Express, with 18 additional branches.
Figaro’s IPO is expected to run from December 16 to 22, with listing on the PSE scheduled for December 31, based on the latest timetable.
Figaro engaged Abacus Capital and Investment Corp., China Bank Capital Corp. and PNB Capital as joint issue managers, joint lead underwriters, and joint bookrunners for the offer.
Preferred shares offer
Arthaland will offer to the public up to 4 million series D preferred shares with an offer price of P500 per share, plus an oversubscription option of up to 2 million preferred shares.
The listed property developer expects to net up to P2.96 billion from the offer, assuming the oversubscription option is fully exercised. Proceeds from the follow-on offering will be used for the company’s redemption of its series B preferred shares, as well as to fund additional investments in its subsidiaries.
The preferred shares are expected to be listed on the PSE on November 29, based on the latest timetable submitted to the SEC.
Arthaland engaged BDO Capital as the sole issue manager, lead bookrunner and lead underwriter for the offer.
The company said its income for the nine months of the year was flat at P748 million from last year’s P740.1 million.
The company said its revenues rose 32 percent to P1.98 billion from last year’s P1.46 billion.
“Revenues attributable to percentage of completion rate for the period ended September 2021 were higher than that of the same period last year. In 2021, all construction activities at various project sites were uninterrupted unlike in 2020 when activities at the construction sites were halted for almost the whole of second quarter due to lockdown or community quarantine.”
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