THE share price of Shakey’s Pizza Asia Ventures Inc. rose on its debut on the Philippine Stock Exchange (PSE) on Thursday, though investors’ interest stock was lukewarm.
Shakey’s shares closed at P12.10, up 7 percent from its initial public offer (IPO) price of P11.26 per share.
The company is only the fourth to list this year.
“Everyone knows Shakey’s offers a variety of pizza flavors, but their best seller remains to be the ‘Manager’s Choice’. However, when the company conducted its initial public offering last week, Shakey’s became the ‘Investors’ Choice’, given the very well-received IPO. Investors are not only familiar with the brand, but they have affinity for the food and service that is uniquely Shakey’s,” PSE Chairman Jose Pardo said in his welcome remarks during the listing ceremony.
Company officials led by the Po family said they will further expand the Shakey’s brand both here and abroad.
The company already owns the Shakey’s brand and does not give royalties to its US counterpart.
Shakey’s offered to the public 352 million primary and secondary shares, including 46 million shares as oversubscription option, raising for the company P3.96 billion.
The proceeds will be used for the expansion of its in-house commissary, working capital requirements, potential acquisition and repayment of debt.
Vicente Gregorio, the company president, said the company intends to open 20 stores by next year after capping 2016 with 184. Each store costs around P20 million to build.
Of the total store network, about 64 are located in the Visayas and Mindanao.
Christopher Po, the company chairman, said Vismin remains underpenetrated. He said there are plans to double stores in the area in the next five years.
Aside from owning the Philippine master franchise for the pizza chain, the company also is a master franchisor for the Shakey’s brand in the Middle East and Asia, excluding Japan, Malaysia, China, Australia and Oceania.
It recently closed a deal to put up its first Shakey’s branch in Kuwait. Company officials said they may open the first store in the small Middle East country by June next year.