- Taco Holding has 484 eateries including Sbarro, doughnut maker
- Private-equity backer says sale could mean 30% share float
Taco Holding, the franchisee of chain restaurants including Krispy Kreme and Sbarro in Mexico, may sell shares in an initial public offering next year, according its private-equity backer.
While banks haven’t yet been hired to manage the deal, several have come forward and expressed interest, said Luis Harvey, a senior managing director at Nexxus Capital, a Mexican private equity firm with about $1.1 billion under management. The restaurant operator is likely to sell about 30 percent of its equity in its initial offer, he said.
Taco Holding started operating in March 2011 and has hundreds of stores in malls around Mexico including doughnut shops, pizza joints and several chains of restaurants that feature tacos. The company would consider buying additional brands ahead of an IPO, Harvey said. He declined to provide an estimate for how much the deal could raise.
Nexxus has helped take companies public including drug company Genomma Lab Internacional SAB, hotel operator Grupo Hotelero Santa Fe SAB and lender Credito Real SAB. The companies raised a combined $284 million in their initial sales.
Alsea, the closest comparable company and the only pure restaurant operator on Mexico’s benchmark IPC index, has turned into a perennial favorite among local stock pickers. Its shares have returned more than 400 percent since 2010 as earnings per share nearly quintupled. In a sign of wager on further growth, the stock commands a price of 41.5 times projected earnings, compared with the 18.6-times multiple for the benchmark index.
Taco Holding has 484 restaurants and other sales points across Mexico, according to its website, while Alsea -- worth 55.9 billion pesos -- has about six times that number.