Figaro Coffee Group, Inc. (FCG) successfully listed its shares at the Philippine Stock Exchange with its share price closing a notch higher at P0.77 apiece from its initial public offering price of P0.75 per share.
FCG’s share price hit a high of P0.89 intraday, up 18.7 percent from its IPO price before ending the day up by 2.7 percent. The total value of shares traded during its debut reached P584.68 million, equivalent 76 percent of its P767 million IPO.
The firm offered 930.17 million common shares with an overallotment option of up to 93.02 common shares for its IPO.
“We are very happy that our IPO generated strong interest from institutional and public investors. We are also grateful to the strong support of the banking community as this reflects their confidence in the food industry, especially in FCG’s subsidiary, Figaro Coffee Systems Inc., a company that has over 25 years of experience,” said FCG Chairman Justin T. Liu.
He added that, “We would like to assure our investors and customers that FCG will continue to look for avenues for growth and we endeavor to provide high quality products.”
“The successful completion of Figaro Coffee Group’s maiden share sale demonstrated investor confidence in the products and prospects of the company’s food and beverage brands as well as its strategic objectives to further grow its business,” said PSE President and CEO Ramon S. Monzon.
He noted that, “Figaro was able to find its sweet spot in their food and beverage offerings with its Angel Pizza brand, which earned record profits despite and during the pandemic.”
“The Local Small Investor tranche of Figaro’s offering was also well-received, with LSIs from 51 provinces and 11 countries subscribing to 94 percent of the shares allocated for LSIs,” added Monzon.
He pointed out that, “The percentage take up of Figaro’s LSI tranche is the fourth highest out of the 17 companies that have so far used the PSE EASy platform.”
“Through this IPO, Figaro was able to raise funds for store openings and commissary expansion. I understand that the company intends to grow its store network to 150 at the end of the year from the present 108 branches,” said Monzon.
He added that, “This will certainly be a welcome development in the areas where the new stores will be opened since this will generate new jobs and drive increased economic activity in said areas. And of course, for consumers in these areas, they will now have easy accessibility to their favorite Figaro food and coffee products.”
As of November 10, 2021, the Figaro Group currently operates 55 Figaro coffee shops, 35 Angel’s Pizza outlets, five Tien Ma’s Taiwanese cuisine restaurants, three TFG Express outlets, a multi-brand kiosk which caters to the ever-changing consumer requirement brought by the “new normal,” and one Café Portofino outlet.
FCG will use net proceeds from the IPO for its store openings and renovations, commissary expansion, debt repayment, and IT infrastructure developments.