Guzman y Gomez announces $2.2b IPO launch
The fast food chain expects to list on the ASX on 20 June.
Guzman y Gomez has announced the launch of its IPO valued at $2.2b with expected listing on the ASX on 20 June.
The fast food brand said that there will be a fully underwritten Initial Public Offering of 11.1 million Shares at a price of $22 per share to raise approximately $242.5 m (the “Offer”), including approximately $200m in primary proceeds and $42.5m of secondary selldown on behalf of select existing securityholders.
Primary proceeds of the Offer will be used to fund GYG’s growth strategy over the coming years, primarily focused on the significant expansion of its corporate restaurant network in Australia. The proceeds of the Offer will also provide substantial flexibility to accelerate this strategy if appropriate opportunities arise.
The offer will have an Institutional Offer, consisting of offer to Institutional Investors in Australia and certain other jurisdictions around the world.
Meanwhile, the Retail offer will consist of a Broker Firm Offer, open to Australian and New Zealand resident retail clients of Brokers who have received a firm allocation of shares from their broker; a Priority Offer, which is open to Eligible GYG Shareholders and select investors in Australia and New Zealand who have received a Priority Offer Invitation; Employee Offer, which is open to Eligible Employees of the Company, who are residents in Australia; and a Franchisee Offer, which is open to Eligible Franchisees, who are residents in Australia and other eligible jurisdictions in the Company’s discretion.
There will be no general public offer.
“As we commence the next chapter as an ASX-listed company, our vision to reinvent fast food and change the way the masses eat will remain central to what we do. We truly believe that fast food doesn’t have to be bad food and we look forward to sharing our food with more guests across Australia and overseas as we look to realise the opportunity we have to grow our network to more than 1,000 restaurants over the next 20+ years,” Steven Marks, founder and co-CEO of GYG said.
“We expect our sales growth to continue through the opening of new restaurants and increasing sales in existing restaurants. We also expect our profitability to improve as we continue to improve our execution in restaurants and further leverage the benefits of our increasing scale. As a result, we expect Pro Forma EBITDA to grow from $29.3m in FY2023 to $59.9m in FY2025,” Hilton Brett, Co-CEO said.
GYG has 185 restaurants, including 62 corporate restaurants and 123 franchise restaurants. GYG also has 16 restaurants in Singapore and 5 restaurants in Japan which are owned and operated by separate master franchisees, as well as 4 corporate restaurants in the US.
