Pizza Hut, KFC operator to undergo landmark Middle East listing

Published: Updated:
Enable Read mode
100% Font Size

The Middle Eastern operator of KFC and Pizza Hut restaurants is to undergo a landmark dual listing, in which Saudi Arabia’s Public Investment Fund and Dubai-based businessman Mohamed Alabbar will sell a 30 percent stake in the firm.

In the first dual listing of its kind, the initial public offering of Americana Restaurants International Plc will offer 2.53 billion shares in Riyadh and Abu Dhabi, according to a statement on Wednesday.

For all the latest headlines follow our Google News channel online or via the app.

The offer period will run from November 14 to 21 for retail investors in the UAE and Saudi Arabia, and until November 22 for institutional investors. Trading on both exchanges will start on or around December 6.

The IPO could raise at least $2 billion, according to people familiar with the matter, which would make it Saudi Arabia’s biggest listing this year. Final details are still under discussion and may change, the people said.

A representative for Americana declined to comment.

Americana is targeting a partial dividend distribution of about 75 percent of net profit attributable to parent for the six months to December 31. The company will pay an annual dividend from 2023, and said it plans to distribute a minimum of 50 percent of net profit.

First Abu Dhabi Bank PJSC, Goldman Sachs Group Inc., Morgan Stanley and SNB Capital are joint global coordinators for the IPO, while HSBC Holdings Plc and EFG Hermes are joint bookrunners.

Americana will be the first company to have shares traded in both Abu Dhabi and Saudi Arabia, where the Tadawul exchange has for years been encouraging firms to dual list.

The listing is part of a late-year rush of IPOs in the Middle East even as markets worldwide are hit by fears over inflation and the risk of an economic slowdown. A surge in oil prices at the start of 2022, as well as increased investor inflows, led to a flurry of listings in the Persian Gulf, which notched up its best first half on record for stock-market debuts.

Americana joins a crowded IPO calendar in the region, with Dubai district cooling firm Empower currently taking orders for an offering of as much as $543 million and private school operator Taaleem Holdings PJSC and Riyadh Cables Group both starting to gauge investor demand for their respective IPOs this week.

Americana operates restaurants for brands including Baskin Robbins, Costa Coffee and TGI Fridays as well as KFC and Pizza Hut, according to its website. The IPO is for the restaurant business only.

The firm reported revenue of $2.05 billion for the year ended December 2021, and net profit of $204 million. Alabbar’s Adeptio AD Investments SPC Ltd. bought the firm in 2016. The PIF took a 50 percent stake in Adeptio at the end of that year and Americana subsequently delisted from the Kuwait stock exchange.

Read more:

Gap shrinks between Egypt's official, black market dollar prices: Traders

More Twitter officials leave after Musk’s $44 billion buyout, gutting top management

Airbnb reports increase in profits as travel rebound persists

Top Content Trending