Max’s Group Inc will commence its follow-on offering next week to raise funds for expansion and settle debt obligations.
In a disclosure to the Philippine Stock Exchange, Max’s said it would set the price of the share sale on November 26, subject to necessary approvals.
Max’s is selling up to 300.14 million common shares at a maximum price of PHP 21.75 per share from December 1 to 5.
Listing of the offer shares is scheduled on December 12. The capital-raising exercise will generate up to PHP 4 billion in proceeds and up to an additional PHP 600 million should the over-allotment option be exercised.
Max’s bagged last week the approval of the Securities and Exchange Commission to launch the share sale.
Net proceeds from the primary component of the offering will fund the expansion of stores and commissaries, fund capital expenditures, working capital and other general corporate purposes.
Proceeds from the secondary share sale will be used to settle a portion of the debt incurred to pay for the acquisition of a controlling interest in Pancake House.