KUALA LUMPUR: There could be one or two more billion ringgit initial public offering (IPO) on Bursa Malaysia, after the successful relist of Leong Hup International Bhd, said Maybank Investment Bank Bhd (Maybank IB).
Leong Hup’s RM1.03 billion IPO is the country’s largest since Lotte Chemical Titan Holding Bhd’s in 2017.
Apart from Leong Hup, QSR Brands is the other billion ringgit IPO that is widely anticipated.
in an interview with the New Straits Times Press recently, "We can see one or two more IPOs that are estimated to raise more than RM1 billion," Maybank IB chief executive officer Fad’l Mohamed said
Maybank IB is one of the principal advisers for QSR Brands' IPO.
"The QSR Brands IPO was retimed, not cancelled. The controlling shareholders are looking for the right window opportunity to relist on Bursa," said Fad'l.
QSR Brands operates 820 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia.
It also runs Pizza Hut in Malaysia and Singapore, with more than 390 restaurants and delivery concepts in Malaysia and 75 restaurants and delivery concepts in Singapore.
In 2013, 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 owning 51 per cent, while the EPF holds 25 per cent and CVC owns 24 per cent.
It was reported that last year, the Companies Commission of Malaysia data showed that 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 2017.
Fad'l, who has helmed Maybank IB since October 2018, said his team was ready to serve the oil and gas sector as corporates seek to recapitalise and sell assets to raise funds.
Back in December 2017, SP Setia Bhd merged with I&P Group Sdn Bhd for RM3.65 billion to emerge as Malaysia's third largest property developer by landbank, just behind Sime Darby Property (28,000 acres) and UEM Sunrise Bhd (13,000 acres).
Fad’l sees more mergers and acquisition activities hotting up in the property sector where inventory had accummulated considerably.
When asked if the plantation sector, which is currently in the doldrums, would see financially stronger corporates snapping up weaker rivals, he said: "There's opportunities for bankers to arrange for asset sales and synergistic mergers, amid pro-longed low palm oil pricing."
Maybank IB is also currently advising YTL Corp Bhd's proposed purchase of a 51 per cent stake in Lafarge Malaysia Bhd for RM1.6 billion.