The Philippines’ Jollibee Foods Corporation (JFC) has reached an agreement with its joint venture (JV) partner Viet Thai International Joint Stock Company (VTI) to list its JV company Superfoods Group on the Vietnam Stock Exchange by July 2019.
Jollibee disclosed the information in a filing sent to the Philippine Stock Exchange (PSE) on November 21.
“We are very excited about our planned initial public offering (IPO) of Superfoods. Our fastest growing business in terms of country is Vietnam and this reflects the vibrancy and potential of the economy and the strong performance of our joint venture business,” Jollibee Chairman Tony Tan Caktiong said.
Superfoods Group owns and operates 159 outlets under the Highlands Coffee
brand, 33 stores of the Pho 24 chain, and three outlets of Hard Rock Café in Vietnam.
Superfoods, which has annual sales of $55 million, is one of the fastest-growing JV businesses of Jollibee. The JV grew 36% year-on-year in the first nine months of 2016, with Highlands Coffee expanding 78%.
The IPO will enable the company to expand Highlands Coffee and Pho 24 in other parts of the world, said Thai Phi Diep, chief executive officer of Superfoods and founder of Highlands Coffee.
Post-IPO, Jollibee, the largest Asian food service company, will own 60% equity in Superfoods while VTI will own the remaining 40%.
The final terms of the IPO, such as the number of shares to be sold and the price per share, will determined based on the capitalization required to significantly grow the business, Jollibee said.
Jollibee completed the acquisition of a 50% stake of Superfoods in January 2012 for $25 million.
The fast-food giant also owns and operates Jollibee Vietnam. There are 80 Jollibee outlets in Vietnam with annual sales of $25 million and growing 50% in 2016 over 2015.