$36m Float For Franchise Group

Herald Sun:

RETAIL Food Group is heading to the stock market in a $36.5 million capital raising.

The group is a recognised leader in food retail franchising with two major brands in its portfolio - Donut King and bb’s cafe — and 327 stores in Australia and New Zealand.

The company is issuing 36.5 million shares at $1 each, with the offer underwritten and lead managed by Wilson HTM.

There will be a priority offer to employees and franchise holders at 90 a share.

The issue is expected to close in the middle of next month with an anticipated listing date of June 22. Total shares on issue on completion of the offer will be 71.69 million.

John Cowley, a former Queensland Newspapers managing director and current chairman of the Oaks Hotel Group, has emerged as chairman of the group.

He said Retail Food Group was a saleable business operating two highly visible and recognised brands and generating a strong, consistent financial performance.