Fast food chain Oliver’s Real Foods has made a healthy debut on the Australian share market.
Oliver’s shares ended their first day of trade at 24 cents, up 20 per cent on the company’s initial public offering of 20 cents a share.
After spending most of the day around the issue price, the shares jumped in the last half-hour of trade.
Notices to the ASX at the end of the day revealed Sydney-based boutique fund manager Paradice Investment Management has emerged as a major investor with 8.8 per cent of the stock.
Oliver’s founder and CEO Jason Gunn is the largest shareholder with a stake of almost 21 per cent.
Oliver’s describes itself as the the world’s first fully organic fast food chain and is planning an aggressive expansion of its healthy, gluten-free and organic fast food outlets on highways along Australia’s east coast.
Oliver’s currently has 20 stores on highways in NSW and Victoria, and estimates it has a three per cent share of the $1 billion east coast highway dining market, which is dominated by McDonald’s, KFC and Hungry Jacks.
Its menu includes salads, pita pockets, cups of green beans, rice nuggets and fresh squeezed juices.
Ahead of its market listing, Oliver’s eventually raised $15 million with the issue of 75 million new shares.
It extended its share offer by a week and revised the offer price down from 30 cents to 20 cents to meet institutional interest at the lower price.
The company plans to use its new funds to add 40 stores on highways in South Australia, Victoria, NSW and Queensland in the next four years.
Founder and chief executive Jason Gunn began Oliver’s 15 years ago after he grew tired of unhealthy roadside dining options.
The company said it has two million customers each year, and is forecasting revenue of almost $42 million in the 2017/18 financial year, and a net profit of $2.4 million.
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