Australian fast food chain Guzman y Gomez (GYG) has upsized its initial public offering (IPO) by nearly 38% from the original target to stand at A$335.1 million ($335.1 million), it said in a statement on Friday.
The increase came after Mexican food-themed GYG received orders from Capital Research Global Investors to buy into the IPO, the company said.
The primary shares sold in the IPO will remain at $A200 million while existing investor TDM Growth Partners will sell down shares to accommodate Capital’s investment.
TDM Growth Partners will remain a major GYG investor with a 26.2% holding on a fully diluted basis, GYG said.
A raising of the proposed size would make GYG’s IPO the largest in almost a year since Redox raised A$404 million in mid-2023.
Australian IPO activity fell 75% in the first quarter of 2024, LSEG data shows, as volatile global financial markets dulled the confidence of companies and investors in new deals.
Reuters