Max’s Group to set final offer price this week

MANILA, Philippines - Max’s Group Inc. is set to come out with the final offer price for its share sale on Wednesday as it gears up for next week’s follow-on offering.

The country’s largest casual dining restaurant chain is looking to generate up to P4 billion in proceeds through the share sale and up to an additional P600 million should the over-allotment option be exercised.

Max’s Group will be offering up to 34.106 million new shares at a maximum price of P21.75 per share.

“Subject to the necessary regulatory approvals, the final offer price is expected to be set on Nov. 26 with the offer period scheduled for Dec. 1 to 5,” Max’s Group said in a disclosure to the local bourse.

Max’s Group on Nov. 10 decided to reduce the offer price of the share sale to up to P21.75 apiece from its initial offer price of up to P29.50 per share following consultations with its underwriters and discussions with key institutional investors.

The offer shares are targeted for listing on the Philippine Stock Exchange on Dec. 12.

“We look forward to entering 2015 armed with a robust and healthy balance sheet. Going into the new year with a debt to equity ratio of just 1.2 times will put us in a prime position to aggressively expand our company on a stable footing and will bring our mission to build loved brands one step further,” said Max’s Group president Robert F. Trota.

The company intends to use P3 billion of the proceeds to repay debt obligations, while the remaining amount will be spent in expanding the current store network and funding capital expenditures.

BPI Capital Corp. has been tapped as bookrunner, issue manager and lead underwriter of the transaction, while BDO Capital & Investment Corp. would serve as senior co-lead underwriter.