Learn
Newsletter
Offers
Podcast
About
  Back
~
1
min read
· Posted on
June 3, 2024

From burritos to billions: Guzman y Gomez announces a spicy IPO deal

GYG has announced they will list on the ASX in June at a valuation of $2.2 billion.

What's the key learning?

  • A voluntary escrow arrangement can typically range from six months to a year, or even longer.
  • By agreeing to hold onto their shares, it sends a strong signal to the market that they believe in the long-term potential of the company and ain’t just looking for a quick cash-out.
  • But, the number of shares in escrow as a percentage of total shares is also important because if only 10% of shares are in escrow, then 90% can still be sold on market.

👉 Background: Guzman y Gomez (or GYG as they call themselves) first opened in Sydney in 2006. Since then, it has expanded its network to 210 restaurants across Australia, Singapore, Japan and the US.

👉 What happened: Now GYG has announced they will list on the ASX in June at a valuation of $2.2 billion. As part of this float, GYG will raise $242.5 million. The bulk of the funds will be used to fund GYG's burrito growth - by expanding its network of stores in Australia and then globally.

👉 What else: GYG noted there is a voluntary escrow arrangement in place for 12 months from listing for approximately 58% of the shares issued.

What's the key learning?

💡A voluntary escrow arrangement is when key stakeholders agree to voluntarily lock up their shares for a certain period post-IPO.

💡 The average number of ordinary shares subject to escrow for Australian companies is:

  • 20-40% for companies worth less than $100 million
  • 40-80% for companies worth more than $100 million

💡With 58% of Guzman y Gomez's shares in escrow, the goal is to help stabilise the share price post IPO - without the shares tumbling like a poorly built brekkie burrito.

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at Work
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 525288) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.