QSR Brands goes ahead with relisting

Still going on: Kamaruzzaman had said QSR planned to raise RM2bil from its IPO.

PETALING JAYA: QSR Brands (M) Holdings Bhd, the operator of KFC and Pizza Hut restaurants in Malaysia, is going ahead with the relisting of its shares on Bursa Malaysia, even as other companies are putting initial public offering (IPO) plans on hold.

According to a draft prospectus submitted to the Securities Commission yesterday, QSR Brands is offering a total of 1.465 billion shares for sale in its IPO, which includes a public issue of 70 million new shares.

The retail offering will amount to 167.53 million shares or 4% of the company’s enlarged issued share capital, while the institutional portion will amount to 1.3 billion offer shares, or 31%.

Proceeds from the IPO will mainly be used for the expansion of KFC and Pizza Hut businesses across the country within 12 months.

Upon completion of the post-listing restructuring, Johor Corp will hold a 33.3% direct stake in QSR Brands, BDO Assets Management Sdn Bhd, 9.8% and JCorp Capital Excellence Sdn Bhd, 7.9%.

Johor Corp president and chief executive Datuk Kamaruzzaman Abu Kassim was reported as saying that QSR planned to raise RM2bil from its IPO.

The company, he said, would have an estimated market cap value of RM6bil upon listing.

The volatility in global equity markets has derailed other companies’ plans for IPOs.

OSK Holdings Bhd last week aborted the proposed listing of its indirect subsidiary – OCC Cables Ltd – on the Hong Kong Stock Exchange, a day after its public offer closed.

Abu Dhabi state investor Mubadala announced it had shelved plans to sell a 25% stake in Spanish oil refiner Cepsa to the public.

QSR Brands’ subsidiaries are principally involved in the restaurant, integrated poultry and ancillary businesses.

To date, QSR Brands operates 810 KFC and 467 Pizza Hut outlets across Malaysia, Singapore, Cambodia and Brunei.

The restaurant business contributed RM4bil or 87% of total revenue for the financial year ended Dec 31, 2017 (FY17).

Net profit for FY17 stood at RM182.98mil, on the back of a revenue of RM4.56bil.

QSR Brands planned to expand its network of KFC outlets, rationalising its network of Pizza Hut outlets, as well as enhancing its technology and digital capabilities to improve customer reach and drive growth.

On dividends, QSR Brands said it intended to recommend and distribute 30% to 50% of its annual audited net profit.

Shares held by the moratorium providers will not be sold, transferred or assigned for a six-month period following the listing of QSR Brands on the Main Market of Bursa Malaysia.