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Johannesburg - South African consumer brands holding company Taste Holdings - formerly Scooters Pizza - is to list on the
JSE's AltX on Wednesday June 21, the company said on Monday.
Releasing its prospectus, Taste said at the date of listing its authorised share capital will comprise 500 million ordinary shares with a par value of 0.001 cent each, of which, after a private placement of 25 million ordinary shares at 90 cents per share, 125 million shares will be in issue.
Scooters Pizza was incorporated in February 2000 and the first outlet was opened in Westville, Durban, in September of that year.
The brand doubled its slice of the pizza market to approximately 9% in 2005 and has become the second largest pizza delivery chain in the country in only five years.
In April last year it acquired its second brand - Maxi's - a family orientated restaurant chain, which was founded in 1993 and opened its first franchise in 1994.
The original team that started Scooters Pizza is still at the helm of the group as are all the senior management in marketing, operations and development.
In May Scooters Pizza was converted to a public holding company and the Scooters Pizza name was changed to Taste Holdings Limited.
The group's primary business is the franchising of trademarks, either group owned or licenced, to Quick Service Restaurants and fast-food franchisees.
The group said in its prospectus that it plans to grow the number of Scooters Pizza outlets to 97 by February 2007 and 109 by 2008 from the current 82. The number of MAXI'S outlets is expected to increase from the current 38 to 53 by 2007 and 73 by February 2008.
A medium-term strategy is the vertical integration of the supply chain which will provide a secondary revenue stream, it said.
"The current brands are well-positioned as aspirational, value-based brands and thereby are well-positioned to continue capitalising on the economic strength of the emerging middle class.
"Furthermore, the proliferation of property developments will continue to drive new store growth," it said.
"Both the Scooters Pizza and MAXI'S brands have the potential to increase their footprint substantially within South Africa. Research utilising competitor penetration, demographic data and trade densities within existing stores has indicated that 160 full service Scooters Pizza outlets and approximately 200 MAXI'S outlets can be opened, without cannibalisation of existing outlets," it added.
It said significant opportunities would arise during the build up to the 2010 World Cup Soccer, which is to be staged in South Africa.
"The overall objective of the group is to become one of the largest food franchise companies in Africa with over 600 outlets by 2010, driven by both organic and acquisitive growth," it added.
Figures provided in the prospectus forecast that the group's revenue is expected to grow from R19.8m at the end of February 2006 to R27.8m by end of the 2007 financial year and to R31.9m by the end of the 2008 financial year.
Gross profit is seen increasing from the current R18.8m to
R26.6m and R31.9m at the end of 2007 and 2008 respectively.
Its pro forma headline earnings per share is expected to grow from the current 3.0 cents to 6.3 cents and 9.4 cents at the end of the 2007 and 2008 financial years respectively.
The group's CEO is Carlo Ferdinando Gonzaga and chief financial officer is Duncan John Crosson.
The private placement opens on Monday and closes on Wednesday June 14. The shares will trade under the abbreviated name "Taste" and the JSE code "TAS".