Guzman y Gomez to make ASX debut with $242.5 million IPO

Company News

by Peter Milios

Guzman y Gomez (GYG), the renowned fast-food chain, has revealed its plans to debut on the Australian Securities Exchange (ASX) in June, marking a significant milestone in the company's journey.

The IPO will involve the sale of 11.1 million shares priced at $22 each, aiming to raise approximately $242.5 million. Of this amount, $200 million will constitute primary proceeds, while $42.5 million will come from secondary sell-downs on behalf of select existing security holders.

Barrenjoey and Morgan Stanley have been selected as joint lead managers to underwrite the offering, signaling confidence in GYG's potential growth trajectory. Trading of the shares is slated to commence on the ASX on June 20, providing investors with an opportunity to partake in the company's future.

GYG expressed gratitude for the robust support and demand from existing shareholders, which include notable names such as Aware Super, Cooper Investors, Hyperion Asset Management, Firetrail Investments, and QVG Capital.

Furthermore, GYG emphasized the continued commitment of its existing large institutional shareholders, TDM Growth Partners, and Barrenjoey Private Capital. Both entities will retain substantial investments post-IPO and have committed to a voluntary escrow until the release of the FY25 results, underscoring their confidence in GYG's long-term prospects.

The decision to go public represents a strategic move for GYG as it seeks to capitalize on market opportunities and fuel its expansion plans within the competitive fast-food industry. The IPO is expected to provide the necessary capital for initiatives aimed at enhancing customer experience, expanding market reach, and driving sustained growth in the years ahead.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?