Jollibee Foods-Global break-up takes shape: Hong Kong chosen for JFCI listing

From AB Capital's The Opening Bell: Three Moves

Event

JFCI will house Jollibee Foods Corp. (JFC)'s international operations and list on HKEX, while the Philippine business remains Philippine Stock Exchange (PSE)-listed. HKEX offers a deeper regional consumer investor base and more relevant global food & beverage comparables.

View

Investors can value the mature, cash-generative Philippine business separately from JFCI's higher-growth international platform, potentially removing the conglomerate/blended-multiple discount. Existing JFC shareholders are expected to receive JFCI shares proportionate to their JFC ownership, making this a value-unlocking separation rather than an asset sale.

Catalyst

JFC's current CFO/CRO and international CEO will take over the standalone company, with capital allocation and portfolio returns likely to be key priorities.

Action

Valuation remains the key unknown. Standalone financials, capital structure and listing valuation have yet to be disclosed. The HKEX Application Proof/prospectus is the next major catalyst and should determine the potential SOTP upside.

Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.