Highlands Coffee mulls Vietnam IPO to raise up to US$400m as Jollibee accelerates global expansion
Jollibee’s Vietnamese coffee arm Highlands Coffee explores a major listing as the group reorganises its international business.
VIETNAM – Highlands Coffee, the Vietnamese coffee chain owned by Jollibee Foods Corporation, is reportedly considering an initial public offering in Vietnam that could raise between US$300 million and US$400 million, according to anonymous sources cited by Bloomberg.
The sources said the company is working with a financial adviser and may bring in additional banks as the discussions progress.
“Deliberations are ongoing and the final IPO size could change,” the people familiar with the matter told Bloomberg. The plans, they added, are still subject to market conditions and internal approvals.
Highlands Coffee is a subsidiary of SuperFoods Group, in which Jollibee acquired a 60% stake in 2012. The coffee brand was founded in 1999 by Vietnamese-American entrepreneur David Thai and has since grown into one of Vietnam’s largest café chains.
The company now operates close to 1,000 stores across Vietnam, serving more than 100 million customers each year and employing over 10,000 people. According to Bloomberg’s sources, the chain has doubled its store network in the past three years while maintaining double-digit same-store sales growth.
The potential IPO comes as Jollibee pushes ahead with broader expansion plans across its coffee, tea and Chinese cuisine businesses.
Earlier this month, the group announced plans to create a standalone international business with the goal of listing it on a US securities exchange.
Under the proposal, Jollibee Foods Corporation would separate its domestic and overseas operations into two companies. “The Philippine-listed business will comprise all domestic operations and brands, and will continue to focus on the local food service market,” the company said in its statement.
A new entity, Jollibee Foods Corporation International, would hold all operations outside the Philippines.
The group said the international business would “consist of JFC’s businesses outside the Philippines, covering multiple brands and geographic markets,” as it seeks to unlock value from its global portfolio.
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