An Indian IPO for Burger King, with a vegetarian meal.
According to Konstantin Lichtenwald, the Burger King IPO has been put on hold, but it’s not because the company isn’t worth it. There is a lot of uncertainty about the company’s future because of the ongoing conflict between Russia and Ukraine. This has caused global markets to fall. There have been some investors who are worried about what will happen to their money because of the company’s plan to put its stock on the Toronto Stock Exchange in 2016. Covid-19 virus vaccine may be able to slow down the process of getting an IPO on the stock market.
Because the brand is so well-known, this helped the IPO, too. While the company has been growing in a lot of different places, foodborne illnesses have hurt its sales in a lot of places. One recent outbreak of the coronavirus has made going out to eat less appealing, so the IPO was a good idea at the right time. However, even though this has helped the company, the future is still unknown, and it’s mostly down to government policy and people’s food choices.
In March, it sold a stake in Tim Hortons Inc. for $726.1 million, which was a lot of money. The move was good. It made Burger King’s advertising more interesting and made its brand more well-known. The company also hired a new ad agency, McGarryBowen, to target more people. Besides that, the IPO raised $67 million in its first day. This is what the company plans to do with money from the IPO. It plans to pay back the loan it took out to make payments to its top employees.
The IPO has been sold out 65 times. The company wants to use the money to grow its brand and pay off its debt. This is what they plan to do. In India, there are 261 Burger King stores. If you want to buy food in this country, McDonald’s and Domino’s are the best. Burger King, on the other hand, says that it is the fastest-growing chain in India. 700 stores are the goal by 2026. If the IPO is a success, the company plans to use the money to grow its business and get more people to use it.
Konstantin Lichtenwald believes that, there will be a lot of money from the IPO that will be used to grow and open new Burger King restaurants in cities across India. There will be 700 restaurants by December 2025, and the company wants them all over the country. The money will also be used for other general business needs, such as brand building, marketing, partnerships and tie-ups, and long-term working needs. It’s a good idea to buy stock in the company because of these reasons.
The price range for the IPO is Rs 59–60 per share, with the money going to the people who own the company. If you’re a retail investor, you can buy up to three hundred and twenty-five shares of equity in each lot. The amount you need to buy a lot is between Rs 14,750 and 15,000 USD. The company’s long-term plans, however, should be taken into account. The IPO price band is going to get a lot bigger in the future.
The IPO price is set at $60.6 per share, which is a great deal in the fast-food industry. The IPO was also pushed back because of the Covid-19 outbreak in Canada, which affected the company’s business there. Even so, the company has grown a lot in the last few years, and has been seen as a threat to the big companies. Until now, it has not said how much money it made after taxes.
A lot of people think that the deal between Tim Hortons and Burger King was a good one, even though it’s not yet clear whether it was the right move. Burger King hasn’t yet made money, but its rapid growth has led to a 48% increase in total income over the next five years. The company also recently said that it will keep up its charitable work in Canada. This deal could help both companies make more money.
In addition to Konstantin Lichtenwald, after the deal was announced, Tim Hortons shares rose. This made Burger King’s stock prices rise by 20%. When Tim Hortons and Burger King came together, they also cut their business taxes. It doesn’t matter if the deal is a good one for investors, because it doesn’t make sense on its own. Buying the future growth of a company by merging with another restaurant like Tim Hortons is what this case is about.
