Business

Guzman y Gomez Shares Surge Over 39% in Major ASX Listing

Jun 20, 2024 1 min read

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Shares of Guzman y Gomez, the Mexican-themed fast food chain, rose significantly on their debut on the Australian Securities Exchange (ASX). Opening at AU$30, the shares surged 36% above the initial public offering (IPO) price of AU$22, giving the company a valuation of AU$2.23 billion ($1.49 billion). This marks the largest local float on the ASX since Redox's offering in July 2023 and the biggest since APM Human Services in 2021.

The IPO, originally announced on May 31, saw an increase in the offer size from 11.1 million shares to 15.3 million shares, raising AU$335.1 million. Guzman y Gomez currently operates 185 outlets in Australia, with plans to expand this number significantly. The company aims to grow its network to over 1,000 restaurants in Australia over the next 20 years and to open 30 new restaurants in 2025, potentially increasing to 40 per year in subsequent years. The company also has master franchisee agreements in Singapore and Japan, and projects global sales to reach AU$1.14 billion by FY25, reflecting a potential growth rate of 29%.

#finance #markets #ipo #australia #food-drink

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