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Thursday, 3 May 2018

(The Star) QSR to relist before November

PETALING JAYA: QSR Brands (M) Holdings Sdn Bhd, the operator of KFC and Pizza Hut restaurant chains in Malaysia, is targeting for an initial public offering (IPO) not later than November this year.

Johor Corp (JCorp) president and chief executive Datuk Kamaruz-zaman Abu Kassim said an estimated RM2bil would be raised from the IPO.

“We would like to list the company on Bursa Malaysia, both the upstream and downstream businesses of QSR Brands.

“The estimated value or market cap of QSR Brands at the IPO could be about RM6bil.

“We have not decided on the details, but we intend to raise an estimated RM2bil from the IPO,” he said during a media briefing on JCorp’s financial results.

JCorp, which is the Johor state investment arm, is the parent company of QSR Brands with an equity stake of 51.86%.

Along with the other two owners of QSR Brands, the Employees Provident Fund and private equity firm CVC Capital Partners Ltd, QSR Brands was taken private back in 2013.

For the financial year ended Dec 31, 2017 (FY17), QSR Brands registered a revenue of RM4.56bil, 7.5% higher than the previous year.

In 2017, KFC Malaysia recorded income growth of 8.25% to RM2.56bil, while Pizza Hut posted revenue growth of 14% to RM543mil as compared to 2016.

QSR Brands has a network of restaurants throughout Asean, with a total of 1,268 Pizza Hut and KFC outlets in Singapore, Cambodia and Brunei to date.

The company opened 15 new restaurants last year.

Apart from operating KFC, Pizza Hut and Ayamas outlets, QSR Brands also manages poultry farming that covers both upstream and downstream interests in Malaysia.

Audited group revenue for JCorp in FY17 amounted to RM5.58bil, a 4.1% growth against the previous financial year, driven by the collective strength of its core businesses in plantation, specialist healthcare, food and restaurant services, as well as contributions from the property and industry development divisions.

The total revenue did not include the consolidation of QSR Brands’ revenue under an agreement with the other partners.

Should the financial results be consolidated, total group revenue for JCorp would have exceeded the RM10bil mark last year.

The group reported a 31% increase in net profit to RM542mil on the back of several one-offs, which include the partial realisation of profit from the land sale in Bandar Dato’ Onn, divestment of plantation arm Kulim (M) Bhd’s interest in a plantation business in Kalimantan, Indonesia, as well as a foreign-exchange gain due to the strengthening of the ringgit.

Kamaruzzaman said there were plans to list Kulim on Bursa Malaysia in one to two years’ time and the company intended to expand its plantation land size to a minimum of 100,000ha before listing.

Currently, Kulim owns 58,000ha of plantation land, with the bulk of it being used for oil palm plantation.

“We are in talks with a few parties to acquire more land in Malaysia and Indonesia.

“Kulim remains the largest contributor to JCorp’s revenue, constituting 67% of total revenue last year,” he said, adding that Kulim was privatised in 2015 in an effort to streamline its business.

Kamaruzzaman is cautiously optimistic that JCorp will be able to surpass the RM5.58bil revenue mark by year-end.