Jollibee Eyes Hong Kong Listing for Overseas Spinoff

Jollibee Foods Corp. (JFC), the Philippines' homegrown fast-food giant, is advancing its plans to spin off its international business, with the company now eyeing a separate listing in Hong Kong as it aims to build a standalone entity focused on overseas expansion. In a stock exchange filing on Tuesday, JFC announced it was considering listing the shares of Jollibee Foods Corp. International (JFCI), which will house the group’s current international operations, on the Main Board of The Stock Exchange of Hong Kong Limited (HKEX). This development marks a significant step since JFC first announced its intention to separate its international and Philippine businesses in January. The company has since been diligently working on the necessary transaction structure, governance, financing, systems, and organizational setup for the two businesses to operate independently. JFC stated that Hong Kong is considered the most suitable listing venue for JFCI, given its existing presence and brand recognition across Asia, aligning well with the international unit’s geographic footprint and investment profile. The HKEX would also provide JFCI with access to both global and regional investors as the company pursues further expansion beyond Asia, including into North America. Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., concurred that Hong Kong presents a more advantageous listing venue for JFCI, particularly in its quest to broaden its investor base. "HKEX is a convenient market for Asian companies that aim to attract both regional and global investors," Colet noted, adding that JFCI’s consumer expansion narrative could resonate with the "deep pool of fund managers and investors" active in Hong Kong’s substantial $6-trillion equity market. The separation is designed to create two independently listed companies with distinct strategies and investment profiles, enabling each to pursue its own growth opportunities more effectively. JFC has also appointed Richard Chong Woo Shin as the CEO of JFCI. Shin currently holds the positions of JFC’s chief financial and risk officer and CEO of JFC International. JFC chair Tony Tan Caktiong expressed that the extensive preparatory work has 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 continue to manage the group’s domestic operations and businesses. The company emphasized that the final terms and timing of the transaction are yet to be determined, and there is no assurance that the transaction will be completed. Source: Inquirer Business