Guzman y Gomez IPO Soars on ASX Debut, Boosting Co-Founders Wealth by AU$264 Million

Highlights:

• Shares Surge on Debut: Guzman y Gomez shares opened at $30 on the ASX, $8 above the listing price, marking the largest IPO in Australia in three years.
• Co-Founder’s Wealth Boost: Co-founder Steven Marks’ equity stake skyrocketed to $264 million, as the company’s successful float revived investor interest in the IPO market.
• Aggressive Expansion Plans: With funds raised, Guzman y Gomez plans to expand to 1000 stores across Australia and explore growth opportunities in northern Europe, the US, and Canada.

Successful Market Entry

Guzman y Gomez (ASX: GYG) shares surged to AU$30 on the ASX, AU$8 above its listing price, marking the largest local IPO in three years. This impressive debut significantly increased the wealth of co-founder Steven Marks by AU$264 million.

Reviving the IPO Market

The Mexican-themed restaurant chain’s successful float is the biggest since APM Human Services hit the ASX in December 2021. Steven Marks, who co-founded Guzman y Gomez and serves as co-CEO alongside Hilton Brett, now holds a 9.9% stake in the company, including 2.4 million options. The surge in share price has elevated his equity stake's value to AU$264 million.

Emotional Milestone

Marks, donning his signature black GYG hoodie and Nike high-tops, expressed his long-held dream of listing the business since its inception nearly 20 years ago. He emphasized that the primary motivation for going public was to allow their loyal customers to own a piece of the company. “We’re trying to change the way the masses eat, and I want the masses to get behind something they believe in,” Marks said.

Defending the IPO Structure

Co-CEO Hilton Brett defended the IPO against criticisms of favoritism towards existing investors, asserting that it was fairly structured. The IPO raised AU$335.1 million, with AU$200 million directed to the company. Major backers like TDM Growth Partners sold down their stakes, while new shareholders such as Capital Research Global Investors joined the fold.

Expansion Plans

Founded in Sydney’s Newtown in 2006, Guzman y Gomez plans to expand to 1000 stores across Australia over the next two decades. They also operate in Singapore, Tokyo, and Chicago. Long-time shareholder Steve Jermyn sees potential for growth in northern Europe, the US, and Canada.

Optimistic Future

The IPO was highly oversubscribed, reflecting strong investor interest. Aware Super’s Chief Investment Officer Damian Graham expressed satisfaction with the investment, highlighting the chain’s growth potential. The successful float is seen as a potential catalyst for reviving the IPO market post-pandemic.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com