Johor Corp to relist QSR Brands by November, eyes RM2 billion from IPO

PETALING JAYA: Johor Corp’s (JCorp) 51.86% owned crown jewel, QSR Brands (M) Holdings, the operator of fast-food chains such as KFC, Pizza Hut and Ayamas, will make a comeback on Bursa Malaysia by year-end, in an initial public offering (IPO) which could possibly raise RM2 billion for the group.
Speaking at a press briefing on the state investment corporation’s 2017 financial results today, group president and CEO Datuk Kamaruzzaman Abu Kassim said while it is premature to say anything with a degree of certainty, the relisting could take place no later than November this year.
Upon listing, the company’s market capitalisation could hit RM6 billion.
In 2013, KFC Holdings (M) Bhd and its holdings company QSR were taken private in a RM5.12 billion buyout by Johor Corp, the Employees Provident Fund (EPF) and private equity firm CVC Capital Partners via their special purpose vehicle, Massive Equity Sdn Bhd.
In 2011, QSR’s total assets stood at RM 2.728 billion.
According to the Companies Commission of Malaysia, the total assets of QSR Brands (M) Holdings for the financial year ended Dec 31, 2016 stood at RM4.936 billion.
On CVC and EPF’s interest upon listing, Kamaruzzaman said the partners will be looking at exiting the business, with the quantum of their selldown being determined by the IPO details.
QSR as a standalone entity contributed RM4.56 billion in revenue in 2017 (RM4.24 billion in 2016).
QSR has 1,268 restaurants under its wing and employs more than 35,000 workers across Malaysia, Singapore, Brunei and Cambodia.
Meanwhile, Kulim (Malaysia) Bhd which was a listed entity before being privatised in 2016, could possibly be making its re-entry to the local bourse in two years’ time.
Kamaruzzaman said the aim is to increase its plantation landbank to at least 100,000ha from the current 58,000ha first before relisting it.
Excluding the contributions from QSR, Johor Corp reported a 10.6% growth in net profit to RM459 million for the financial year ended Dec 31, 2017 against RM415 million a year ago. Revenue rose 4.1 % to RM5.58 billion from RM5.36 billion.
However, when the contributions of QSR are taken into account, the group’s total revenue would have exceeded the RM10 billion mark last year.
JCorp is cautiously optimistic on crossing the RM5.5 billion revenue mark again this year, with higher contributions from the healthcare division.
Kamaruzzaman said its healthcare arm KPJ Healthcare Bhd is expected to hit RM4 billion in revenue contribution in a year or two, up from the RM3.18 billion recorded last year.
KPJ Healthcare will be opening two hospitals this year, in Perlis and Bandar Dato Onn respectively.
Meanwhile, property arm Johor Land Bhd, which is undertaking the construction of 8,000 affordable homes in the state by 2025, has completed and delivered more than 1,000 units, with the rest in various stages of progress.