Jollibee Foods Corp. (JFC) is moving forward with plans to spin off its international business, with the homegrown fast-food giant now eyeing a separate listing in Hong Kong as it builds a standalone company focused on its overseas expansion.
In a stock exchange filing on Tuesday, JFC said it was considering listing the shares of Jollibee Foods Corp. International (JFCI) on the Main Board of The Stock Exchange of Hong Kong Limited (HKEX).
JFCI will hold the group’s current international business.
The development follows JFC’s announcement in January that it planned to separate its international and Philippine businesses.
Since then, the company has worked on the transaction structure, governance, financing, systems and organization needed for the two businesses to operate independently.
JFC said Hong Kong was best suited to the international unit’s geographic footprint and investment profile, given its existing presence and brand recognition across Asia.
HKEX would also give JFCI access to global and regional investors as the company pursues further expansion beyond Asia, including North America.
Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., agreed that Hong Kong was a better listing venue for JFCI, particularly as the company seeks to broaden its investor base.
‘HKEX is a convenient market for Asian companies that aim to attract both regional and global investors,’ Colet said.
He added that JFCI’s consumer expansion story could appeal to the ‘deep pool of fund managers and investors’ active in Hong Kong’s $6-trillion equity market.
The separation is intended to create two independently listed companies with distinct strategies and investment profiles, allowing each to pursue its own growth opportunities.
JFC also named Richard Chong Woo Shin as JFCI’s CEO. Shin currently serves as JFC’s chief financial and risk officer and CEO of JFC International.
JFC chair Tony Tan Caktiong said the preparations had strengthened the group’s conviction in pursuing the listing.
‘That work has reinforced our conviction in the listing and has led us to conclude that Hong Kong is the market best aligned with JFCI’s business, geographic footprint and long-term ambitions,’ Tan Caktiong said.
JFC itself will remain listed on the Philippine Stock Exchange and will retain the group’s Philippine operations and businesses.
JFC stressed that the final terms and timing have yet to be determined and that there is no assurance the transaction will be completed.