Pizza Hut final
Pizza Hut, KFC and Krispy Kreme are part of Americana's stable, which has been operational for more than 50 years. Image Credit: Nicholas D'souza/Shutterstock

Dubai: One of the biggest F&B businesses in the region, Kuwait’s Americana Restaurants will offer a 30 per cent stake via an IPO, which will be listed on ADX and Saudi Arabia’s Tadawul by December 6. The subscription is likely to run from November 14 to 21 for retail investors in the UAE and Saudi Arabia and until November 22 for institutional investors.

"We are proud of the fact that Americana Restaurants is a GCC-born food and beverage champion, which has grown to be the single largest player in the MENA region and Kazakhstan," said Mohamed Alabbar, Chairman (and founder of Emaar Properties). "Americana Restaurants has earned a reputation of being a stand-out operator of iconic global brands, with best-in-class digital capabilities, and a track record of breakthrough financial results."

Americana Restaurants will offer 2.53 billion shares and, according to a Bloomberg report, the IPO could raise at least $2 billion.

The company operates in 12 countries as of now, with brands such as Pizza Hut, KFC, Krispy Kreme, TGI Fridays, and Hardees. In fact, its restaurant network was bigger than the combined tally of the next four largest players at the end of last year. 

The offer price will be determined via a bookbuilding process. 

"Americana’s current network is bigger than the combined one of the next four in the region’s F&B industry." - Mohamed Alabbar, Chairman, Americana Restaurant Image Credit: Supplied
Americana's dividend policy
• The company intends to 'maintain a robust dividend policy' and is planning a partial distribution of around 75% of net profit attributable to the parent entity for the six months ended December 31, 2022. This is to be paid during the six months ended June 30.
• From 2023 onwards, it expects to adopt an annual dividend distribution policy, with a minimum of 50% of net profit attributable to parent, and with the intention to further distribute any cash not specifically reserved for general corporate purposes, growth investment or M&A activity.
• The first full year dividend from net profit attributable to parent earned in the year ended December 31, 2023 would be payable in the six months ended June 30, 2024.

“A concurrent dual listing on ADX and the Saudi Exchange marks a first-of-its-kind transaction for both markets," said Alabbar, who bought a stake in Americana in 2016. "And no company could be better suited than Americana Restaurants to carry this torch. With macroeconomic and demographic tailwinds that support our accelerating growth, this is an exciting time to be inviting investors in the UAE, Saudi Arabia and internationally to share in our onward journey of success.”

The Group - which delisted from the Kuwait stock exchange in 2018 - had revenues of $2.05 billion in 2021, and $1.15 billion for the six months ended June last, with 'strong profitability and cash generation'. Net profit for last year was $204 million and for first-half 2022 at $121 million.

"The Group's markets of presence have a young, large and growing addressable population of over 270 million as at 31 December 2021," said a statement. It will be further helped 'with over 78 per cent of the population below the age of 45, the presence of strong spending enablers such as high economic and disposable income growth, a favourable taxation environment as well as high purchasing power in the GCC markets'.

F&B's growing and getting bigger
The MENA and Kazakhstan markets represented a $56 billion 'out-of-home dining' market in 2021, growing at an estimated CAGR of 14% in dollar terms from 2022-26, compared to 3% in developed markets such as the US, the UK, Canada and Australia.