Jollibee’s P12-billion follow-on offering draws retail investors

JOLLIBEE Foods Corp. (JFC) listed its P12-billion follow-on offering of preferred shares, attracting retail investors as the base offer is said to be more than three times oversubscribed.

“It humbles us to see that our offering of eight million preferred shares has been oversubscribed by 3.11 times,” Ernesto Tanmantiong, president and chief executive officer of JFC, said during the listing ceremony on Thursday.

“Thank you especially to the retail investors who accounted for the vast majority of the investment in our preferred shares,” he added.

JFC offered in total 12 million Series A preferred shares with a 3.2821% per annum (p.a.) rate and Series B shares with a rate of 4.2405% p.a. for P1,000 each. The company allocated an overallotment option of four million shares.

The P12-billion preferred shares offering is said to be the company’s second capital raising activity at the Philippine Stock Exchange (PSE) since its market debut in 1993.

The offered shares form part of the first tranche of JFC’s shelf-listed P20-billion preferred shares, the remaining will be offered within three years.

Majority of the proceeds from the offering will be used to partially buy back JFC’s senior perpetual securities and for general purposes, such as the company’s commissary and plans for store expansion.

Its wholly owned unit Jollibee Worldwide Pte. Ltd. (JWPL) is buying backup to $250-million guaranteed senior perpetual securities as JFC continues its plans to have a stronger balance sheet through “fewer debt obligations, more distributed financial maturities over the next few years,” among others.

PSE Chairman Jose T. Pardo said the results of JFC’s follow-on offering “reflects the confidence that investors have in the company’s leadership and management, the brands in its portfolio, and its strategic initiatives moving forward.”

JFC is now operating 17 brands in 34 countries with over 5,800 stores across the globe. The company attributes its success to its listing at the PSE, which “gave a significant contribution” to its growth.

“[Going public] enabled us to broaden our capital, invest in more restaurant outlets and factories, and acquire local and foreign brands,” said Mr. Tanmantiong.

“We list our first-ever preferred shares on the [PSE] with the conviction that the future of the Jollibee group of companies is even brighter,” he added.

JFC is planning to further expand its stores in North America and in Europe as well as become “a major player” in the Middle East, Asia, and Australia. It aims to be “one of the top five restaurant companies in the world.”

On Thursday, JFC shares at the stock exchange gained 6.39% or P13.80, closing at P229.80 apiece. — Keren Concepcion G. Valmonte

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