GYG boosts IPO size by 38% to $335.1m

TDM Growth Partners will reduce its stake but remain a large shareholder.

Guzman y Gomez has increased its IPO offer by 38% to $335.1m after it received a commitment from one or more funds advised by Capital Research Global Investors to subscribe for Shares at the Offer Price.

The Mexican fast food chain initially announced an IPO valued at $2.2b.

However, the primary proceeds raised under this Offer remain unchanged at $200m. According to a recent press release, TDM Growth Partners will sell down a portion of its stake but will remain a large shareholder in GYG with a holding of 26.2% of GYG’s issued capital on a fully diluted basis.

The Board, senior management and existing substantial shareholders, including TDM Growth Partners, will represent approximately 59% of GYG’s issued capital on a fully diluted basis. TDM Growth Partners, Barrenjoey and other existing shareholders will remain committed to a voluntary escrow through to the release of the FY2025 results.

GYG will today lodge a replacement Prospectus with ASIC reflecting the increase in the IPO Offer size and other minor changes which will also include updates to the timetable.

“We welcome Capital Research Global Investors to the GYG register. We have an exceptional group of cornerstone investors on our register, validating the strength of our offering in the QSR segment both locally and internationally, and the appeal of our clean, fresh and made-to-order Mexican-inspired food,” Steven Marks, founder & CEO of GYG said.