Photo: Arcos Dorados' CEO Woods Staton in 2009
Latin American McDonald’s franchisee Arcos Dorados Holdings Inc. has filed for an initial public offering (IPO) on the New York Stock Exchange
Friday, in the regulatory filing, Arcos said it will be offering nearly 12.5 million class A shares. Selling shareholders will also be offering another 50 million class A’s as well.
The IPO price is expected to be between $13 and $15, and could raise as much as $937 million from their sale.
In the filing, the Buenos Aires-based company said it estimates that $150 million will be reinvested, with new restaurants being opened and others renovated.
Arcos is the largest franchisee of the restaurant brand in terms of sales and number of restaurants. It is also Latin America’s largest fast-food chain, with 1,755 restaurants in 19 countries such Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela.
Advising on the transaction will be Bank of America Corp. (BAC), JPMorgan Chase & Co (JPM), Morgan Stanley (MS), Itau Unibanco Holding SA, and Citigroup Inc. (C).
The filing states that after the IPO, Arcos Dorado’s chief executive officer Woods Staton – current controller with a 76.9 percent voting interest – will reduce his stake to 75.5 percent.