LEONG HUP, QSR IPO CLOSE TO HATCHING
Offerings may hit market as early as next month, raising US$900m
MALAYSIA’S poultry producer Leong Hup International and fast food operator QSR Brands are in advanced stages of launching their initial public offerings (IPO) in the second quarter, which would revive the nation’s primary market, said sources.
The IPOs, which were postponed last year due to weak markets, could together raise as much as US$900 million (RM3.66 billion), said the sources, adding that the offerings could hit the market as early as next month.
Total fundraising from local IPOs plunged to US$170 million last year, the lowest in 20 years, and compared with US$1.8 billion raised in 2017, according to Refinitiv data.
“International investors have been generally underweight on Malaysia, so there is definitely an interest to look at opportunities,” said one banker.
Local stocks took a beating in May last year after veteran leader Tun Dr Mahathir Mohamad ousted the ruling coalition of more than six decades in the country’s election, creating uncertainty over the new government’s policies.
The benchmark stock index fell six per cent last year, in line with regional markets.
In response to a query, Leong Hup said it was in the midst of obtaining necessary regulatory approvals for the IPO.
Leong Hup, which is majorityowned by the founding Lau family and counts private equity firm Affinity Equity Partners as an investor, is in talks to finalise cornerstone investors and set an indicative price band for its IPO, said bankers.
Both local and foreign funds were expected to take stakes in Leong Hup, said another banker.
QSR, the country’s biggest fast food chain, which counted the investment arm of Johor and private equity firm CVC among its investors, was also set to start negotiations with cornerstone investors, said the sources.
Both companies, whose IPOs have been pending for more than a year, were in the process of submitting updated financial statements to the regulators, the sources added.