Too many chains? Not yet, at least in Indonesia. The power of international operators of U.S.-based chains is growing significantly, fueled largely by growth in young markets.
— Jason Clampet
The biggest pizza chain in Indonesia is planning a domestic initial public offering that could raise as much as $150 million, people with knowledge of the matter said.
PT Sriboga Raturaya has picked advisers for a listing of its food service and restaurant franchising unit, which runs outlets of Pizza Hut and Japanese noodle chain Marugame Udon, according to the people. The business could sell shares in Jakarta as early as the first half of 2018, the people said, asking not to be identified because the information is private.
The Indonesian pizza market is forecast to expand to 8.81 trillion rupiah ($650 million) by 2021, up from 5.76 trillion rupiah in 2016, according to consultancy Euromonitor International. Pizza Hut is the most popular pizza restaurant operator in the country, commanding more than 70 percent of the market last year, followed by Domino’s with 6.1 percent, Euromonitor data show.
Sriboga Raturaya will join Hermina Hospital Group and snack maker GarudaFood Group in seeking to sell stock after the Indonesian benchmark index hit a record high last month. Any offering could help revive a domestic IPO market where fundraising is down more than 30 percent this year, according to data compiled by Bloomberg.
An official at Sriboga Raturaya declined to comment.
First-time stock sales in Southeast Asia’s largest economy raised $683 million this year, down from $1.03 billion during the same period in 2016, data compiled by Bloomberg show. Sriboga Raturaya, which started out as a producer of wheat flour in 1995, also has interests in education, logistics and food ingredients manufacturing, according to its website.
©2017 Bloomberg L.P.