KFC, Pizza Hut operator in Mena plans $2b IPO

Americana Restaurants International, which manages KFC and Pizza Hut outlets in the Middle East & North Africa and Kazakhstan, said on Wednesday it would list 30 per cent of its capital shares for trading on the Abu Dhabi Securities Exchange (ADX) and the Saudi Stock Exchange.

Announcing the initial public offering, the largest out-of-home dining and quick service restaurant operator in the Mena region by number of restaurants, said the offering consists of a sale of 2.527 billion existing ordinary shares of Americana Restaurants by the selling shareholder – Adeptio Investments AD Ltd.

According to a Bloomberg report, the IPO could raise at least $2 billion.

The offering size is expected to be 30 per cent of Americana Restaurants’ total issued share capital. The IPO is expected to run from November 14 until November 21 for retail investors in the UAE and Saudi Arabia, and from November 14 until November 22 for institutional investors. Admission of the shares for trading on the exchanges is expected to take place on or around December 6.

Adeptio Investments owns 96 per cent of the total issued share capital of Americana Restaurants and is the jointly-held investment vehicle of Mohamed Ali Rashed Alabbar, founder of Emaar Properties, and Saudi Arabia’s Public Investment Fund (PIF).

Chairman of Americana Restaurants Mohamed Ali Rashed Alabbar said the start of the IPO process is a major milestone in the group’s 50-plus year history.

“We are proud of the fact that Americana Restaurants is a GCC-born food and beverage champion, which has grown to be the single largest player in the Mena region and Kazakhstan.”

Led by an experienced and deeply committed management team, Americana Restaurants has earned a reputation of being a stand-out operator of iconic global brands, with best-in-class digital capabilities, and a track record of breakthrough financial results, said Alabbar.

“Our diversified restaurant platform serves the most popular food categories and delights millions of customers across our 12 countries of operation. The strength and diversity of Americana Restaurants’ iconic brands, combined with its scale, growth, profitability, and cash generation make it a rare asset with no peers in the region," he said.

He said a concurrent dual listing on ADX and the Saudi Exchange marks a first-of-its-kind transaction for both markets, and no company could be better suited than Americana Restaurants to carry this torch.

“With macroeconomic and demographic tailwinds that support our accelerating growth, this is an exciting time to be inviting investors in the UAE, Saudi Arabia and internationally to share in our onward journey of success.”

In the UAE, First Abu Dhabi Bank has been appointed as lead receiving bank while Abu Dhabi Islamic Bank and Al Maryah Community Bank have been appointed as receiving banks.

In Saudi Arabia, the Saudi National Bank, Al Rajhi Bank, Riyad Bank, Alinma Bank and Arab National Bank have been appointed as Receiving Banks.

Americana Restaurants is the largest out-of-home dining and quick service restaurant operator in its 12 countries of operation across Mena and Kazakhstan. The group achieved revenues of $2.05 billion and $1.15 billion for the year ended December 31, 2021 and the six months ended June 30, 2022, respectively, with strong profitability and cash generation. Net profit attributable to parent for the year ended December 31, 2021 was $204 million and for the six months ended June 30, 2022 was $121 million.

- issacjohn@khaleejtimes.com

• Business