Investors will be able to buy a piece of The Mad Butcher for $1.30 per share in an initial public offering next month.
It was announced today that $25 million worth of shares in the franchisor will be sold in April and May.
NZX-listed shell company Veritas purchased The Mad Butcher for $40m last year, with plans to list the company on the sharemarket in order to part-fund the acquisition.
Veritas acquired the Mad Butcher franchisor business from owner Michael Morton for $20m in cash and $20m in Veritas shares. Morton bought the company from his father-in-law Peter Leitch, the original Mad Butcher, in 2007.
Veritas has started a bookbuild process where selected institutional investors and NZX firms are able to lodge bids indicating the number of shares they wish to apply for.
Full details regarding the $25m offer will be released following completion of the bookbuild and registration of the prospectus later this week.
The price of $1.30 per share represents a 14.8 per cent premium to the volume weighted average price for the three-month period prior to the announcement of the $40m purchase at the end of last year.
A priority pool of shares will be available to Veritas shareholders and existing Mad Butcher franchisees.