Burger King franchisee postpones plan to list shares

TFI Tab didn’t see IPO conditions as being favourable enough

A Burger King franchisee, TFI Tab, has postponed its planned IPO in New York. Photograph: Michael Smith/Getty Images

A Burger King franchisee, TFI Tab, has postponed its planned IPO in New York. Photograph: Michael Smith/Getty Images

 

Burger King’s biggest franchisee outside the US, TFI Tab Gida Yatirimlari, postponed its plan to list shares in New York because it didn’t see IPO conditions as favourable enough, people with knowledge of the matter said.

The Turkish company’s initial public offering will happen when market conditions improve, said the people, who asked not to be named because the details aren’t public. A representative of TFI Tab Gida declined to comment.

The Istanbul-based company was planning to go public as early as next year, people familiar with the matter said in September. It filed with the US Securities and Exchange Commission on November 13th for a listing of American depositary shares.

While American depositary shares have gained 13 per cent since offerings by global companies in the past 12 months, ADRs listed by companies based in the Middle East and Africa have fallen 9 per cent, according to data compiled by Bloomberg.

TFI owns the Restaurant Brands International burger chain franchise through its TAB Gida unit. It operated 1,822 restaurants at the end of September, including 766 in China and and 1,056 in Turkey, rising from 1,623 at the end of 2016, according to the company’s prospectus.

Last year, Goldman Sachs Group, Credit Suisse Group and the European Bank for Reconstruction and Development invested $150 million for almost 10 per cent of TFI, valuing the company at about $1.5 billion.

Proceeds from the IPO had been earmarked to repay a $75 million loan in 2013 from Yapi Kredi Bankasi, boost working capital and go toward corporate purposes, according to the prospectus. Morgan Stanley, Credit Suisse and Goldman Sachs were leading the offering of the company, which also has franchises of Popeyes, Sbarro and Arby’s in its portfolio.

– Bloomberg