With the group looking to unlock shareholder value.
On Wednesday, March 4, Jollibee Foods Corporation (JFC) said that Board of Directors of its Vietnamese coffee chain, Highlands Coffee, is evaluating the planned initial public offering (IPO) of the subsidiary in Vietnam.
“The contemplated transaction would involve a standalone IPO and listing of Highlands Coffee in Vietnam, positioning the business as a publicly traded company,” explained Jollibee.
According to the restaurant giant, the proposed IPO is intended to support the chain’s next phase of growth by providing it with direct access to capital markets, which will elevate its corporate profile, and enable greater strategic and operational focus.
“Vietnam’s equity market liquidity has been among the festest-growing in the region, supported by accelerating retail investor participations,” noted JFC on why it chose to offer an IPO there.
It further stated that the growth of the market in the Southeast Asian country has been driven by increased market access and engagement, with Vietnam targeting approximately 9 milion retail investor accounts by 2025 and 11 million by 2030.
“This underscores the market’s expanding depth and relevance for consumer-focused growth companies,” with the group adding that it will serve as a “platform for exponential shareholders’ value creation in a very dynamic capital market.”
Highlands Coffee has since engaged international and local advisors and has commenced work on defining the structure, process, and timing for the potential IPO.
The transaction, according to Jollibee, has the target completion date of the first quarter of 2027, which is still subject to prevailing market conditions, completion of appropriate steps— including diligence and internal restructuring, and securing all required regulatory and legal approvals across relevant jurisdictions.
Further updates will be provided as appropriate and in accordance with applicable disclosure requirements.
It also noted that the coffee chain stands out as a one of the properties with the most attractive growth and value creation potential within the Jollibee’s portfolio, which it told reflects both strategic M&A success and post-acquisition organic expansion.
JFC noted that since it first invested in the chain in 2012, it has grown from a network of 56 stores to nearly 1,000, which has helped Highlands become the leading Vietnamese coffee chain.
DISCLAIMER: The information is preliminary in nature and subject to change. There is no assurance as to the final terms, timing or completion of any IPO. This is not an offer of securities and is not intended to solicit any offer to purchase securities.
