{"id":47779,"date":"2023-10-20T15:55:03","date_gmt":"2023-10-20T15:55:03","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/collins-foods-ipo-plans-highlight-food-sector-strength-startupsmart\/"},"modified":"2023-10-20T15:55:03","modified_gmt":"2023-10-20T15:55:03","slug":"collins-foods-ipo-plans-highlight-food-sector-strength-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/collins-foods-ipo-plans-highlight-food-sector-strength-startupsmart\/","title":{"rendered":"Collins Foods\u2019 IPO plans highlight food sector strength – StartupSmart"},"content":{"rendered":"

Pacific Equity Partners\u2019 fast food group Collins Foods plans to raise up to $238 million in an initial public offering in an environment where experts have identified food retail as a major growth area. <\/span><\/p>\n

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PEP is a leading Australasian private equity firm focused on buyouts and late stage expansion capital in Australia and New Zealand.<\/p>\n

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In addition to Collins Foods PEP\u2019s portfolio includes Hoyts Group, Veda Advantage, Godfreys and Griffin\u2019s Foods.<\/p>\n

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A successful float will see PEP end more than five years of ownership of Collins Foods, which operates 119 KFC outlets in Queensland and 26 Sizzler restaurants nationally.<\/p>\n

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According to the company\u2019s website PEP owns 52% of Collins Foods with management and employees owning the remaining 48%.<\/p>\n

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Collins Foods will offer 81.6 million shares priced from $2.50 to $2.92, with shares expected to begin trading on August 10 and Collins Foods\u2019 management retaining a 10% stake.<\/p>\n

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Most of the funds raised will be reinvested in the business, particularly the refurbishment of the company\u2019s KFC stores.<\/p>\n

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Collin Foods\u2019 decision to pursue an IPO was prompted by last month\u2019s successful sale of a larger rival fast food chain.<\/p>\n

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Quadrant Private Equity\u2019s Quick Service Restaurants \u2013 which operates the Red Rooster, Oporto and Chicken Treat chains \u2013 was sold to Archer Capital for $450 million.<\/p>\n

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Quadrant, which made a threefold return for investors on the deal, said the certainty of a sale was more attractive than a float because of market volatility and consumer caution.<\/p>\n

Food retail has been nominated by franchise experts as a key growth area for businesses, suggesting that there is an opportunity for start-ups to buy into the sector or to expand existing operations.<\/p>\n

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Lorelle Frazer, director of the Asia-Pacific Centre for Franchising Excellence at Griffith University, says food will continue its impressive performance as consumers continue to dine out at less expensive venues.<\/p>\n

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Simon McNamara \u2013 a founding shareholder in burger chain Grill\u2019d and co-founder of franchise investment fund Inkuberra \u2013 identified casual dining as the strongest area of food retail in the current economic climate.<\/p>\n

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\u201cThat segment has been doing very well because people post-GFC are more dollar conscious and more value driven,\u201d he says.<\/p>\n

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According to franchise expert Jason Gehrke, any business involved in asset management and enhancement, such as auto accessories and home improvements, is also benefitting from cost-conscious consumers.<\/p>\n

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\u201cConsumers are beginning to reconsider buying or upgrading their cars or homes as a result of financing or affordability issues, and are deciding instead to renovate or improve what they already have,\u201d he says.<\/p>\n","protected":false},"excerpt":{"rendered":"

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