MAYBANK IB SEES MORE MEGA LISTINGS
QSR Brands is potential billion-ringgit IPO this year after Leong Hup’s success
THERE could be one or two more billion-ringgit initial public offerings (IPOs) on Bursa Malaysia this year following the successful relisting of Leong Hup International Bhd last week, said Maybank Investment Bank Bhd (Maybank IB).
Leong Hup’s RM1.03 billion IPO was the largest since Lotte Chemical Titan Holding Bhd’s RM3.77 billion listing in 2017.
Apart from Leong Hup, QSR Brands is the other billion ringgit IPO that is widely anticipated to list this year.
“We see one or two more IPOs that we estimate can raise more than RM1 billion,” Maybank IB
chief executive officer Fad’l Mohamed told the New Straits Times recently.
“The QSR Brands IPO was retimed, not cancelled. The controlling shareholders are looking for the right window to relist on Bursa.”
Maybank IB is one of the principal advisers for QSR Brands’ IPO.
QSR Brands operates 820 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia.
It also runs the Pizza Hut franchise in Malaysia and Singapore, with more than 390 restaurants and delivery concepts in Malaysia and 75 restaurants and delivery concepts in Singapore.
In 2013, Johor Corp (JCorp), together with the Employees Provident Fund (EPF) and private equity firm CVC Capital Partners Ltd, took QSR Brands and its unit KFC Holdings (M) Bhd private in a RM5.2 billion deal.
JCorp is currently the controlling shareholder of QSR Brands with a 51 per cent stake, while the EPF holds 25 per cent and CVC 24 per cent.
The Companies Commission of Malaysia data showed QSR Brands’ net profit grew 4.7 per cent to RM192.59 million from RM183.95 million in 2017. Its revenue rose one per cent to RM4.61 billion from RM4.56 billion in the same period.
Meanwhile, Fad’l said he expected more mergers and acquisitions in the property sector, where inventories had accumulated considerably.
In December 2017, SP Setia Bhd merged with I&P Group Sdn Bhd to emerge as Malaysia’s third-largest property developer (based on landbank), behind Sime Darby Property and UEM Sunrise Bhd.
“Also, there are opportunities for bankers to arrange for asset sales and synergistic mergers amid prolonged low palm oil pricing,” said Fad’l when asked if the plantation sector, which was currently in the doldrums, would see financially stronger corporates snapping up weaker rivals.
Maybank IB is currently handling YTL Corp Bhd’s acquisition of a 51 per cent stake in Lafarge Malaysia Bhd for RM1.6 billion.