Burger Fuel Worldwide is seeking to raise $15 million through an initial public offering (IPO).
What is the company behind it?
Burger Fuel was established in 1995 as a "gourmet burger" company. It currentlyhas 20 franchised stores, including one in Sydney. The prospectus shows it is still quite small, with revenue of $3.13 million, and undercapitalised.
Who is the target market?
This offer appeals to share investors wanting to take a punt on a potential growth stock.
What return does it offer?
No returns are predicted, indeed the offer documents don't even provide financial forecasts, which make return expectations impossible to predict.
When was it launched?
The IPO was launched on June 18 and closes on July 16.
What other products is it like or is it competing with?
This is just another growth share investors may like to consider adding to their portfolio.
Is it long term, short term or medium term?
The company has outlined ambitious international growth predictions, which will take some time to pull off, making this offer one for the bottom drawer.
What is the unique selling point of this IPO?
It's got a beautiful prospectus! This is one of those companies that plays in a competitive market and attempts to build success around its brand.
How strong a stomach do you need for it?
Much stronger than for the burgers. This is a share for the speculative part of your portfolio.
What's the hitch?
This is a step into the unknown. There are many companies that have built success around their brand, some of which are mentioned in the prospectus. However, that is no guarantee that Burger Fuel can emulate these successes is a worldwide market saturated with burger joints.
