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KFC’s Mena franchisee set to raise $1.8bn from dual Gulf listing

REUTERS/Tim Wimborne
Americana has set a price range at AED2.50 to AED2.62 per share

Americana Restaurants, the Middle East and North Africa franchisee of fast-food restaurants KFC and Pizza Hut, is set to raise as much as $1.8 billion from its initial public offering (IPO) after the company disclosed an indicative price range on Monday.

The price range was set at AED2.50 to AED2.62 per share, the company said in a statement, implying an equity value for the group between $5.73 billion to $6.01 billion.

The final price will be disclosed on November 23, the company said.

Americana is seeking a dual listing in the United Arab Emirates and Saudi Arabia.

Adeptio Investments, an investment vehicle jointly held by Saudi Arabia’s Public Investment Fund (PIF) and Mohammed Alabbar, a Dubai businessman and the founder of Emaar Properties, is offering about 2.53 billion existing ordinary shares, representing 30 percent of the company.

Retail investors in the UAE will be allocated five percent of the offering, while retail investors in Saudi Arabia will be offered 10 percent. The remaining 85 percent will be allocated to institutional investors.

The Gulf is experiencing an IPO boom as the governments of Saudi Arabia, Abu Dhabi, and Dubai push state-led listing programmes, riding high on oil prices and a comparative dearth of such offerings in other markets.