Bubble tea chain said to seek RM300 million IPO next year

KUALA LUMPUR: Loob Holding Sdn Bhd, which owns the Tealive bubble tea brand, is planning an initial public offering that could raise as much as RM300 million (US$72 million), according to people with knowledge of the matter.

The Kuala Lumpur-based company has hired advisers for the planned share sale, according to the people, asking not to be named as the information is private.

The firm is considering seeking a valuation of as much as RM1 billion and targets a listing next year, the people said.

Bryan Loo, Loob Holding’s CEO, confirmed the company is planning to list in the first half of next year.

“We have engaged corporate advisers for this exercise,” Loo said in an emailed response to Bloomberg queries. “We cannot confirm the valuation sought nor the IPO portion, pending final recommendations from our advisers.”

Malaysia has seen US$9.4 million first-time share sales so far this year, far less than the Us$47.8 million in the same period in 2018, according to data compiled by Bloomberg.

The country’s IPO market is expecting a boost this month from a US$250 million offering by Leong Hup International Bhd and some of its existing shareholders.

Loob Holding will be joining companies like Malaysia KFC operator QSR Brands (M) Holdings Bhd. and home improvement chain Mr DIY in seeking a listing in Kuala Lumpur.

Deliberations of Loob Holding’s IPO plan are still in early stages and may not necessarily lead to a deal, said the people.

Loob Holding, which owns other food and beverage brands such as Ko Ko Kai and Define Food, runs more than 200 outlets in Malaysia, according to a company statement in March. It also has stores in China, Vietnam and Australia.