Guzman y Gomez announces IPO


Like a dividend with your burrito? Fast food chain set to list, battlers bypass banks for help, and millennials' favourite payment method to be regulated. Here are five things you may have missed this week.

Tex Mex meets ASX: Guzman y Gomez IPO

Holy guacamole! Mexican fast food chain Guzman y Gomez (GYG) is listing on the Aussie stock exchange.

when is the guzman and gomez ipo launching

The Mexican-inspired fast food chain is set to list on June 20, 2024 with an offer price of $22 per share.

The IPO is expected to raise about $242.5 million, which GYG will use to expand its chain of restaurants.

GYG expects to open 30 new restaurants across Australia in the 2025 financial year, increasing to an additional 40 outlets each year over the following five years.

It's a spicy growth target.

But GYG isn't the only chain with an appetite for expansion.

Industry heavyweights Subway (1227 stores Australia-wide) and McDonald's (1021 outlets) as well as GYG's direct competitor Zambrero, all opened new stores in the past year.

For investors hungry to add fast food to their portfolio, the GYG listing will expand on a fairly limited menu of options.

Other ASX-listed fast food providers include Domino's Pizza, and Collins Foods, which owns 279 KFC and Taco Bell restaurants nationally.

Subway is owned by a private equity group, and Maccas is listed on the New York Stock Exchange.

Aussies not turning to banks for help

Close to one in two Aussies with debt, the equivalent of 5.8 million people, have struggled to make repayments in the last 12 months.

Yet three in 10 say they would not turn to their bank for help.

That's because the majority of us (55%) aren't even aware that banks offer financial hardship assistance.

However, research by ASIC's Moneysmart shows that for two in five people, feelings of shame or embarrassment prevent them asking for help.

The thing is, ASIC found 65% of people who reach out to a lender for financial assistance say they feel much better as a result.

ASIC Commissioner Alan Kirkland, says, "Customers in hardship are entitled under the law to request assistance."

He adds that if you aren't happy with a bank's response to your request for help, make a complaint.

If that doesn't resolve the issue, contact the Australian Financial Complaints Authority (AFCA).

In mid-June, AFCA will launch an online complaints portal that can be used to track and manage complaints.

BNPL to be regulated as consumer credit

This week saw new consumer protection laws introduced for buy now, pay later (BNPL).

To date, most BNPL products haven't been covered by the National Consumer Credit Act.

So, providers haven't been required to check that consumers can afford a BNPL account in the same way as other forms of credit such as credit cards and loans.

That's about to change with BNPL to be regulated as consumer credit.

Assistant Treasurer Stephen Jones, says, "We want Australians to enjoy the benefits of BNPL, while knowing there are strong consumer protections in place.

"If it looks and acts like credit, then it should be regulated as such."

The new regulations come as growing numbers of consumers are being slugged by BNPL late payment fees.

According to Finder, in the last year, 20% of BNPL users have copped a late fee, up from just 5% in 2020.

A 2022 survey by the Good Shepherd found 84% of financial counsellors reported that their clients had tried to manage the debt by opening additional BNPL accounts, leading to an unmanageable debt spiral.

BNPL is especially popular among younger Aussies. Over one in two Gen Z, and six out of 10 millennials, have BNPL accounts.

SA waives stamp duty for first home buyers

First home buyers in South Australia will no longer have to budget for stamp duty when they buy or build a new home.

The latest SA State Budget has completely scrapped stamp duty for first-time buyers, regardless of how much the new property costs.

The move comes as Adelaide property values have soared 14.4% over the past year, taking the median home value to just over $757,000.

For homes purchased prior to 6 June, a property price cap of $650,000 applies for a duty exemption.

First home buyers in SA can also be eligible for a $15,000 first home owner grant.

Get cracking with voluntary super contributions

Time is running out if you're planning to make a voluntary super contribution - and claim it on tax in the current financial year.

The contributions must be in your account by June 30 but super funds are warning that this is a busy time of year, and it takes time to process contributions.

Aware Super, for example, is advising members to make personal contributions by June 25 to make sure they're counted towards the 2023/24 financial year.

If you want to claim a tax deduction for personal super contributions, you need to notify your fund first - and get an acknowledgement from the fund.

Most super funds have a downloadable form on their website that can be used to flag a deductible contribution.

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A former Chartered Accountant, Nicola Field has been a regular contributor to Money for 20 years, and writes on personal finance issues for some of Australia's largest financial institutions. She is the author of Investing in Your Child's Future and Baby or Bust, and has collaborated with Paul Clitheroe on a variety of projects including radio scripts, newspaper columns, and several books.