Guzman y Gomez has increased the size of its initial public offering to $335.1m from $242.5m after receiving strong demand for shares.
The Mexican quick service restaurant business said in a statement the move came after it had received a commitment from one or more funds advised by Capital Research Global Investors to subscribe for shares at the Offer Price.
The increase represents an additional selldown of $92.6m, but the primary proceeds raised under the offer remain unchanged at $200m.
“To accommodate Capital Research Global Investors’ investment, TDM Growth Partners will sell down a portion of its stake but will remain a large shareholder in Guzman y Gomez with a holding of 26.2 per cent of Guzman y Gomez issued capital on a fully diluted basis,” the company said.
Directors, senior management and existing substantial shareholders, including TDM Growth Partners, will represent about 59 per cent of Guzman y Gomez’s capital.
TDM Growth Partners, Barrenjoey and other existing shareholders will remain committed to a voluntary escrow through to the release of the 2025 financial year results, the company said.
Guzman y Gomez is run by founder and chief executive Steven Marks and is scheduled to list on June 20 with a $22 per share price and a $2.2bn market value.
The management roadshow got underway this week, drawing a mixed investor response.
Most existing shareholders are only selling out in a very small way, including TDM, ex-Kmart boss Guy Russo, Barrenjoey and Mr Marks.
Aware Super is increasing its holding, as are other pre-IPO investors, including Hyperion Asset Management, QVG Capital, Cooper Investors and Firetrail Investments.
Working on the float are Barrenjoey and Morgan Stanley.
The debate surrounding the Mexican fast food chain’s value has been vigorous yet the market will be the judge in the next two years, based on the earnings results for its 185 outlets — located mostly in Australia — and the trading of its stock.
The group has maintained its 7.5 per cent same-store sales growth as it plans to roll out more stores despite tough economic conditions.
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