QSR Media interviews Pie Face CEO, Wayne Homschek, regarding their IPO announcement
Pie Face recently announced their intention to float on the ASX in 2012. QSR Media sat down with Wayne Homschek, Founder, Pie Face to find out more. We put the following questions to him:
Why now?
There are a couple of reasons, number one, we have very strong momentum, the business is experiencing exceptional growth.
To continue and service that growth we require capital to expand the kitchen and refinance dept.
It is all part of our flow plan and will assist with our private placement this year as it provides certainty for our investors about time frames.
Macquarie and CBA are keen to participate after looking at our business plan. This is a strong vote of confidence.
Our presentation to investors was very compelling, showing the flow of our business in the next 12, 24, 36 months, hence they were keen to get on board now.
Was this always the plan?
Yes this was always the plan. We knew we would eventually become a public company, as we would require the funding for our growth strategy.
We have been working on the business plan, including IPO scenarios for 2 years.
About 9 months ago had initial discussions with brokers.
How much do you plan to raise?
The original plan was to raise 5 million, however after talking to our existing shareholders combined with the demand from Macquarie and CBA for stock, we have increased this to 10 million.
What’s the value of the company?
After the PP it will be $55m; the IPO will not likely proceed unless the value is $100-120m minimum.
This figure is dependent on market conditions, business objectives, earnings and cash flow.
Whilst we are planning to float next year there is no firm date, the business conditions must be right.
Will you be selling any of your shares as IPO?
It is unlikely I will say many, if any.
The goal was to create a liquidity event for our current shareholders who have been with us for 3-5 years.
We also see it as a way to create transparency in the business, which makes running the business as efficient as possible.
What other recent IPO’s for QSR's can you think of, i.e. any benchmarks in the industry?
There are not many QSR’s in Australia who have gone down this path, only RFG and Domino’s come to mind.
Pie-Face is a “best in breed” in the QSR category. We see ourselves competing against other “best in breeds” such as JB-Hi-Fi and Flight Centre as opposed to other publically listed QSR’s.
When is the private placement occurring?
This is happening in next 4-6 weeks. We will be marketing to clients in the next 2 weeks.
You plan to increase the production facilities with the finance raised through the IPO, what exactly will you be doing?
Our current production line is at maximum capacity. We will be automating supply lines to make it a lot more efficient.
The new facilities will be capable of servicing 150 stores.
