Figaro Coffee Group pushes IPO back into January because of “the holidays”
Despite having known about its December 31st IPO date for at least two months, Figaro Coffee Group [FCG 1.28 pre-IPO] submitted a disclosure to the PSE on Friday to say that it would delay its IPO until January 24.
FCG said that it was delaying its IPO “in deference to the upcoming holiday season”, implying that FCG had suddenly become very concerned with our ability to complete the “documentary requirements” of the offer in a “timely” fashion.
On the same day, in an interview with Market Edge, FCG’s chairman and director Justin T. Liu said that the disastrous Medilines Distributors [MEDIC 1.60 2.44%] IPO was “a bit concerning”, but noted that “we see that we’re different companies”, before later saying that he believes in the long-term prospects of the food and beverage industry, regardless of what happens during the FCG IPO.
The new dates will see FCG’s final price set on December 24, with an offer period running from January 10 to January 14, with an IPO on January 24.
MB BOTTOM-LINE
The Liu Family is undoubtedly skilled at timing the market to maximize returns from public offerings, and it is in Mr. Liu’s best interest (and the best interest of his shareholders) to delay the FCG offering if it thinks that MEDIC’s wet fart of an IPO has a chance of negatively impacting either the uptake of FCG’s shares during its offer period or FCG’s stock price performance post-IPO.
I sincerely doubt that the 24-day delay will materially impact FCG’s plans for the use of the proceeds, though it may (though I have no info on this) push back construction start dates for new locations and renovations discussed in FCG’s IPO plan.
While it’s hilarious to think about FCG suddenly clutching its pearls at the thought of conducting an IPO over Christmas, it’s probably not weird at all that the FCG team wants to give the MEDIC situation time to cool down before trying its own IPO.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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