Figaro targeting to raise ₧1.7B from maiden offer


The Figaro Coffee Group Inc., a pioneer in the local coffee shop industry, has filed its registration statement with the Securities and Exchange Commission (SEC) for its proposed initial public offering (IPO).

The company is hoping to raise as much as P1.77 billion from its IPO. In the documents it submitted to the SEC, the company, which has diversified to other brands such as Angel’s Pizza and Tien Ma restaurants, said it will sell some 1.26 billion in common shares and an over-allotment option of 126 million shares, for an indicative price of P1.28 apiece.

It hopes to sell the shares from December 16 to 22, and list it on the Philippine Stock Exchange by January 2022.

“We intend to use the net proceeds from the offer primarily to fund the following projects and plans: store openings and renovations; commissary expansion; debt repayment; IT infrastructure developments; and potential acquisitions,” the company said.  “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 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.

“Out of the approximate P501.50 million offer proceeds to fund store openings and renovations, an estimated total of P432 million is allotted for capital expenditures for the planned company-store openings,” Figaro said.

The company said it will use some P350.3 million to increase the system-wide capacity commissary operations. The commissary expansion involves the construction of satellite commissaries in key locations throughout the country and the construction of a new commissary, or called Mayon 2 Commissary building to be located in the head office of the subsidiary. These will be rolled out between next year through 2023 to support its system-wide store network expansion and product development activities.

“The satellite commissaries are planned to be located in Luzon, one in north Luzon and one in South Luzon, and in the Visayas-Mindanao region, one in Cebu and one in Davao. Setting up of a satellite commissary is estimated to cost around P24 million,” the company said.

“In addition, the construction of the Mayon 2 Commissary building is estimated to cost a total of around P255 million for the expenses of the building construction, various equipment, building fit-out, furniture and fixtures and other pre-operating expenses for this new commissary.”

The company has engaged Abacus Capital and Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. as joint issue managers, joint lead underwriters and joint bookrunners for the offer.

The Figaro Group is a home-grown diversified food group with over 25 years in the industry. It operates through its one wholly-owned subsidiary, Figaro Coffee Systems Inc., which operates a set of retail restaurants with 90 branches nationwide and international territories that serve a variety of food offerings and services.

As of September 17, the company operates 52 Figaro coffee shops, 31 Angel’s Pizza outlets, five Tien Ma’s Taiwanese cuisine restaurants, one TFG Express outlet and one Café Portofino outlet.

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