December 7, 2021 | 8:38
The PES has just approved the IPO of CafÃ© Figaro Group [FCG 1.28 pre-IPO], and in the process, confirmed December 31 as the IPO date of the share. The price will be set on December 10, with the offer period running from December 16 to 22. IPO on New Years Eve. The company is offering 1.386 billion primary (new) ordinary shares, up to P1.28 / sh (price to be confirmed Friday).
The majority shareholder of FCG, Camerton Inc, is the holding company of the Liu family (they also own Cirtek [TECH 3.92 2.89%] via this holding company), and its shares will be subject to a 365-day block. About a third of the proceeds will go to acquisitions and another third to store openings and renovations. FCG plans to open 35 Angel’s Pizza stores, 18 TFG Express (micro-footprint food stall) stores, 6 Figaro Coffee stores and 2 Tien Ma’s stores. The group plans to increase its current list of 46 stores to a total of 150 stores by the end of 2022, and 300 stores by the end of 2029. The prospectus indicates that only 61 of these new stores will be owned by âcorporateâ companies. Perhaps implying that the bulk of the stores that will be added as part of this plan will be owned by franchisees.
This IPO is truly a fascinating animal. First of all, there is this ticker symbol. I’m not going to lie to you: it sucks. “FCG” is uninspired and bland, like a cup of decaffeinated coffee served “old hot bath water”, and is an especially glaring choice given the alternative I suggested months ago, which was ” KAPE “. It is now a stock symbol. At the same time, however, I can understand why the group might be reluctant to rely too heavily on the Figaro Coffee brand, given that this is truly a pizza IPO.
Aside from the nature of FCG’s potential acquisitions (they admit they don’t have any goals yet; maybe smaller pizza chains with a street reputation like Gino’s?), Angel’s expansion Pizza is really the subject of this transaction. Another interesting wrinkle is that this business is one of the babies of the Liu family, and your experiences with TECH as a trader, investor, or market watcher might give you clues as to how this might turn out. And don’t get me started on this IPO date! Who do this ? We will definitely be digging deeper into this IPO once the price is confirmed at the end of this week.