Guzman Y Gomez joins ASX in blockbuster IPO

gyg ASX IPO australian equities

20 June 2024
| By Laura Dew |
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Mexican restaurant chain Guzman y Gomez (GYG) has listed on the ASX in a blockbuster IPO.

The burrito purveyor, which has 185 stores across Australia, raised $335 million with shares priced at $22 each.

Upon listing at 12pm on 20 June, shares rose by 36 per cent on the public offer price from $22 to $30.

The IPO was the largest float since the listing of employment and workplace services provider APM Human Services in December 2021.

Shareholders in GYG are divided between institutions and retail or high-net-worth investors. Among the largest 20 shareholders are Barrenjoey with 10 per cent, Aware Super at 6 per cent, Cooper Investors at 2.2 per cent, and State Street Australia at 0.9 per cent.

The listing was first announced on 3 June with an expected market cap of $2.2 billion, and the proceeds are expected to be used to fund the firm’s expansion plans.

GYG said it believes there is a “significant network opportunity” both in Australia and globally for the company. It expects to open 30 new restaurants in FY25 and increase to 40 per annum within five years. The firm also has an emerging presence in Singapore, Japan and the US.

The firm was formerly backed by Magellan, but it sold its 11 per cent stake for $140 million in May 2022. At the time, the manager said it would allow Magellan to focus on its core fund management activities. Magellan’s then head of capital and advisory, Craig Wright, also resigned from GYG’s board where he had been a non-executive director.

GYG has 210 stores across four countries, including 185 in Australia. Between FY15 and FY23, its global network sales increased from $101 million to $759 million and is expected to reach $1,138 million by FY25, supported by strong comparable sales growth and ongoing network expansion.

 

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