Australian pie maker Patties Foods has said that it will use capital raised by its successful debut on the Australian Stock Exchange to fund expansion through organic growth and strategic acquisitions.
Patties was founded by the Rijs family and has become Australia’s leading manufacturer of frozen savoury and dessert products, with a portfolio of iconic brands including Four’N Twenty, Patties, Herbert Adams and Nanna’s.
Based on the offer price of A$1.75 (US$1.35), Patties Foods will have a market capitalisation of A$243.3m, with a 48% interest being retained by the Rijs Family Trust. The company raised A$102.7m through the offer of 58.7m shares.
Patties managing director Richard Rijs, who, with his four brothers, manages the family business, said capital raised by the IPO would be used to fund future expansion. He said that the company would have significant balance sheet capacity following the offering, allowing it to take advantage of both organic growth and acquisition opportunities as they become available.
“The company believes there is growth potential in a number of areas such as further penetration of the foodservice market, continued new product development and innovation, other organic growth initiatives, expansion into new segments and product groups and further development of export markets,” Rijs said at the offer launch.
Patties shares closed at A$1.92 today (6 November), up 17 cents from the issue price of A$1.75.