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Berjaya Food IPO oversubscribed by 14.48 times
Berjaya Food IPO oversubscribed by 14.48 times
March 01, 2011
KUALA LUMPUR, March 1 — Berjaya Food Bhd (BFood), en route to listing on the Bursa Malaysia Main Market, has received an oversubscription rate of 14.48 times for its seven million shares made available for public subscription.
A total of 4,942 applications for 109.4 million shares with a total value of RM55.8 million were received from the public, BFood said in a statement today.
Another 23.9 million shares reserved for private placement and 4.9 million shares for subscriptions by eligible directors, employees and business associated with the BFood Group were also fully subscribed, it said.
“We are optimistic that the Malaysian food services market will continue to grow and BFood will be able to leverage on its position as a listed entity to capitalise on the business opportunities that may arise,” said its Chief Executive Officer Datuk Francis Lee Kok Chuan.
BFood’s initial public offering (IPO) listing exercise involved an offer for the sale of 35.8 million existing BFood shares at an offer price of 51 sen per share.
“This IPO exercise raised RM18.3 million for Berjaya Group Bhd, the offeror,” it added.
The company listing is scheduled for March 8, with a market capitalisation of about RM72.1 million.
AmInvestment Bank Bhd is the principal adviser, managing underwriter, underwriter and placement agent for the IPO.
BFood’s wholly-owned subsidiary, Berjaya Roasters (M) Sdn Bhd, holds the exclusive right to the development and operation of the Kenny Rogers Roasters (KRR) chain of restaurants in Malaysia.
Since the opening of its first KRR restaurant in 1994, BFood has opened 52 KRR restaurants nationwide. — Bernama
Berjaya Food eyes bigger bite
By Sharen Kaur
Published: 2011/02/19
Berjaya Food Bhd (BFood), which runs the Kenny Rogers Roasters (KRR) restaurant chain in Malaysia, may buy other food businesses under the Berjaya Group to expand.
The food group launched its initial public offering (IPO) yesterday, which means that investors will get the chance to have a bite of the KRR business.
Berjaya, controlled by tycoon Tan Sri Vincent Tan Chee Yioun, holds the franchise for KRR, Krispy Kreme Doughnuts, Starbucks Coffee, Wendy's and Papa John's Pizza.
BFood executive chairman Datuk Robin Tan Yeong Ching said it may even buy rival food chains.
"This is a long-term plan. At the moment, there is nothing on the table. Our immediate focus will be to grow the KRR chain here," he said yesterday in Kuala Lumpur after launching BFood's prospectus.
BFood now owns 52 KRR stores in various malls in Malaysia. On top of that, it also has 13 franchised outlets.
BFood chief executive officer Datuk Francis Lee said it plans to open eight to 10 new outlets or more a year, provided there are good locations. This would mean a minimum investment of RM6 million a year.
However, it will not open any under franchising to control the operations, Lee said.
The IPO entails an offer for sale of 35.8 million shares of 50 sen each, priced at 51 sen. This means the IPO will raise RM18.3 million and the money will be pocketed by parent Berjaya Group. The listing on Bursa Malaysia's Main Market is scheduled on March 8.
BFood has hired AmInvestment Bank Bhd to arrange the IPO.
Lee said upon listing, BFood will have RM26 million in cash to fund its outlet expansion and he expects the company to do better this year.
"Most of our KRR outlets are profitable. We have some stores that are not doing well but it is not bleeding so badly. We are finding ways to improve all our outlets such as introducing tea-time menu, home delivery and takeouts," Lee said.
For fiscal year April 30 2010, BFood registered a net profit of RM8.7 million on revenue of RM60.4 million. The first restaurant was opened in 1994.
Berjaya Food IPO oversubscribed by 14.48 times
March 01, 2011
KUALA LUMPUR, March 1 — Berjaya Food Bhd (BFood), en route to listing on the Bursa Malaysia Main Market, has received an oversubscription rate of 14.48 times for its seven million shares made available for public subscription.
A total of 4,942 applications for 109.4 million shares with a total value of RM55.8 million were received from the public, BFood said in a statement today.
Another 23.9 million shares reserved for private placement and 4.9 million shares for subscriptions by eligible directors, employees and business associated with the BFood Group were also fully subscribed, it said.
“We are optimistic that the Malaysian food services market will continue to grow and BFood will be able to leverage on its position as a listed entity to capitalise on the business opportunities that may arise,” said its Chief Executive Officer Datuk Francis Lee Kok Chuan.
BFood’s initial public offering (IPO) listing exercise involved an offer for the sale of 35.8 million existing BFood shares at an offer price of 51 sen per share.
“This IPO exercise raised RM18.3 million for Berjaya Group Bhd, the offeror,” it added.
The company listing is scheduled for March 8, with a market capitalisation of about RM72.1 million.
AmInvestment Bank Bhd is the principal adviser, managing underwriter, underwriter and placement agent for the IPO.
BFood’s wholly-owned subsidiary, Berjaya Roasters (M) Sdn Bhd, holds the exclusive right to the development and operation of the Kenny Rogers Roasters (KRR) chain of restaurants in Malaysia.
Since the opening of its first KRR restaurant in 1994, BFood has opened 52 KRR restaurants nationwide. — Bernama
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