QSR said to have hired 3 lead banks for US$500m IPO

The Sun (Malaysia) - - SUNBIZ -

KUALA LUMPUR/SIN­GA­PORE: Malaysia’s largest fast food op­er­a­tor QSR Brands has hired three banks, in­clud­ing Cit­i­group and Credit Suisse, to lead its ini­tial pub­lic of­fer­ing (IPO), two sources with di­rect knowl­edge of the mat­ter told Reuters.

Malayan Bank­ing (May­bank) will also be one of the three lead banks for the of­fer­ing, the sources said. They did not want to be named as the talks are pri­vate.

The date for the IPO, which could raise about US$500 mil­lion (RM2.1 bil­lion), is not cer­tain but is likely for some time in 2017, the sources said.

CIMB Group Hold­ings and RHB Bank will also be in­volved though not as the lead bankers, they said.

QSR de­clined to com­ment. Cit­i­group, Credit Suisse and CIMB de­clined to com­ment, while May­bank and RHB did not im­me­di­ately re­spond to re­quests for com­ment.

QSR op­er­ates and man­ages the Ken­tucky Fried Chicken (KFC) and Pizza Hut restau­rant fran­chises in Malaysia. It is the sole KFC fran­chisee in Malaysia, Sin­ga­pore, Brunei and Cam­bo­dia. The com­pany also runs an in­te­grated up­stream poul­try pro­duc­tion and pro­cess­ing busi­ness in Malaysia which sup­plies the bulk of its chicken re­quire­ments in the coun­try.

QSR is owned by pri­vate eq­uity firm CVC Cap­i­tal Part­ners Ltd, Malaysia’s largest pension fund – the Em­ploy­ees Prov­i­dent Fund, and the in­vest­ment arm of Jo­hor, Jo­hor Corp. The con­sor­tium took QSR pri­vate in 2013.

CVC and EPF are look­ing to exit their in­vest­ments in QSR through the IPO, while Jo­hor Corp will con­tinue to hold a stake, the sources said.

“Jo­hor will re­main as a long-term in­vestor in QSR,” said one of the sources.

The sec­ond source said the of­fer­ing could draw strong in­vestor in­ter­est. “QSR is the dom­i­nant player in Malaysia, big­ger than McDon­ald’s. There is a scarcity of good con­sumer names and size­able IPOs,” said the sec­ond source.

Malaysia’s IPO mar­ket has been slow in re­cent years as its cur­rency took a hit from the sus­tained volatil­ity in global com­mod­ity mar­kets. The South­east Asian IPO mar­ket has also been muted, as global eco­nomic head­winds dented in­vestor sen­ti­ment.

But a few of­fer­ings could hit the mar­ket next year. Prop­erty de­vel­oper Eco World De­vel­op­ment Group’s in­ter­na­tional unit will list in the first quar­ter of next year with an aim to raise nearly US$500 mil­lion.

Tan Sri Syed Mokhtar Al-Bukhary, who con­trols util­i­ties and in­fra­struc­ture com­pany MMC Corp, plans to list some of the com­pany’s port as­sets next year in an of­fer­ing that could raise at least US$700 mil­lion. – Reuters

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