Americana Restaurants, the Middle East and North Africa (Mena) franchisee of fast-food restaurants KFC and Pizza Hut, said it planned to launch an initial public offering (IPO), followed by a dual listing in UAE and KSA.

 

Adeptio Investments, an investment vehicle jointly-held by Dubai-based founder of Emaar Properties Mohammed Alabbar and Saudi Arabia’s Public Investment Fund, is offering about 2.53 billion existing ordinary shares, representing 30% of the company, Americana said.

 

Commenting on the launch of the IPO process, Americana Restaurants’ Chairman, Alabbar, said: “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. 

 

Diversified platform

“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."

 

“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, KSA and internationally to share in our onward journey of success.”

 

The IPO will be from November 14 to November 21 for retail investors in the UAE and KSA, and November 14 to November 22 for institutional investors in both the countries.

 

Listing

Following its public share-sale, the firm expects to list on the Abu Dhabi Securities Exchange and the Saudi Exchange by December 6. Americana said it is targeting a partial dividend distribution of about 75% of net profit attributable to its parent firm for the second half of this fiscal year, to be paid in cash during the first six months of the next year.

 

From 2023 onwards, Americana plans to adopt an annual dividend policy, distributing a minimum of 50% of net profit attributable to its parent, with “the intention to further distribute any cash not specifically reserved for general corporate purposes, growth investment or M&A activity”, it added.

 

The Selling Shareholder expects to sell 30% of the company’s issued share capital. It is intended that the offering will comprise (i) a public offering to (a) individuals and other investors in the UAE and Saudi Arabia, and (ii) an offering to qualified institutional investors in a number of countries, including the UAE and Saudi Arabia.

 

Offer price

The offer price per share will be determined through, and following, a bookbuilding process. Subscribers in the UAE Retail Offer and KSA Retail Offer will subscribe for shares at the Offer Price.

 

First Abu Dhabi Bank PJSC acting in conjunction with FAB Capital, Goldman Sachs International acting in conjunction with Goldman Sachs Saudi Arabia, Morgan Stanley & Co International acting in conjunction with Morgan Stanley Saudi Arabia, and SNB Capital have been appointed as Joint Global Coordinators and Financial Advisors, and HSBC Bank Middle East Limited acting in conjunction with HSBC Saudi Arabia and EFG Hermes UAE Limited acting in conjunction with EFG Hermes UAE LLC have been appointed as Joint Bookrunners and Underwriters. 

 

First Abu Dhabi Bank PJSC has been appointed as Listing Advisor in the UAE, and SNB Capital has been appointed as Lead Manager in Saudi Arabia. Rothschild & Co Middle East Limited has been appointed as Independent Financial Advisor.

 

Lead banks

In the UAE, First Abu Dhabi Bank PJSC has been appointed as Lead Receiving Bank and Abu Dhabi Islamic Bank PJSC and Al Maryah Community Bank LLC have been appointed as Receiving Banks.

 

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

 

The Shariah Supervision Committee of First Abu Dhabi Bank PJSC has issued a pronouncement confirming that, in its view, the Offering is compliant with Shariah principles. Investors may not rely on this pronouncement and should undertake their own due diligence to ensure that the Offering is Shariah compliant for their own purposes.-- TradeArabia News Service