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Burger King’s china business could receive ‘whopper’ value in an IPO: Bloomberg
Posted on Friday, 23 August 2019 13:51
TAB Food Investments, the Istanbul-based owner of the Burger King China franchise, is considering an initial public offering (IPO) in Hong Kong for the business after previously abandoning plans for a US listing, Bloomberg reported.

Citing people with information on the situation, the news provider observed that a share sale could raise around USD 200.00 million at a total valuation of USD 1.00 billion.

However, some insiders cautioned a price has not be set for the fundraising at this time.

A stock market debut of the Chinese fast food operations is likely to come next year and would be a significant holding for the Hong Kong bourse, which has been affected by protests in the city over the summer, the sources said.

No final decision has been made as of yet, according to the people in the know, who asked not to be identified as the matter is still private, and added details of the potential flotation could also change.

Speaking to Bloomberg, TAB chairman Erhan Kurdoglu said the company is always assessing IPO possibilities; however, there is no concreate development at this time.

The business also controls the Burger King franchise in Turkey, where it has 636 restaurants, as well as other chains such as Popeyes Louisiana, which it signed an agreement with last month to open over 1,500 fried chicken outlets in China over the next ten years.

In the Asia Pacific-based country, TAB manages 1,055 fast food eateries under the Burger King name.

The group began investing in the Chinese operations of the globally-known brand back in 2012 and has helped open around 1,000 new restaurants across a 5-year period.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 14 IPOs of restaurants and other eating places announced or completed worldwide in 2019 to date.

The largest of these involves Luckin Coffee, incorporated in the Cayman Islands but known as the biggest competitor to Starbucks in China, which raised USD 645.15 million through a listing on Nasdaq in May.

Zhejiang Yiming Food, Tai Hing Group Holdings, Kura Sushi USA and Palace Banquet Holdings, among others, have also announced or completed flotations this year.

© Zephus Ltd