October 24 (SeeNews) - Romania's Sphera Franchise Group launched on Tuesday an initial public offering (IPO) of existing shares on the Bucharest bourse, BVB, hoping to raise up to 324.4 million lei ($83 million/71 million euro) through the sale of a 25% stake by two of its three shareholders.
Subscription for the shares will run till November 2.
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The company is offering investors up to 9.8 million shares, with a subscription price set at between 25 and 33 lei. Some 85% of the offering will target institutional investors, while the rest will target retail investors, the company said in its IPO prospectus published on BVB's website.
Sphera Franchise Group was set up in June and operates the outlets of KFC, Pizza Hut, Pizza Hut Delivery and Taco Bell in Romania. It also runs fast food chain KFC's operations in Moldova and in the northeastern part of Italy.
Prior to the establishment of the new company, the fast-food chains were part of US-based YUM! Brands' Romanian subsidiary, owned by Radu Dimofte, Lucian Vlad, and Nicolae Badea, who now hold 43.7%, 33.3%, and 23% stakes, respectively, in Sphera Franchise Group. In the ongoing offering, Vlad is selling a stake of up to 22.3% and Badea is selling a stake of up to 2.7%.
Sphera Franchise Group is now one of the biggest restaurant groups in Romania, with annual sales of more than 130 million euro ($146 million), 100 locations and over 4,000 employees.
(1 euro=4.5988 lei)