KUALA LUMPUR • PappaRich Malaysia, a food chain selling local cuisine from nasi lemak to curry laksa noodles, is considering a Singapore initial public offering (IPO), people with knowledge of the matter said.

The company, which opened its first restaurant in Malaysia in 2006, is targeting to achieve a valuation of at least $200 million in the share sale, according to the sources. It aims to conduct the offering as soon as this year, one of them said.

Any deal would add to a rebound in the Singapore IPO market last year, when fund-raising surged more than fourfold to US$1.7 billion (S$2.4 billion), data compiled by Bloomberg shows. PappaRich would follow other South-east Asia-based restaurant chains including ABR Holdings, which operates Swensen's restaurants, and Oldtown in gaining a listing to fund expansion.

A representative for PappaRich, which is based near Kuala Lumpur, said a listing has always been a consideration as the company considers fund-raising options to support its expansion plans. PappaRich "would certainly" expect to have a valuation in excess of $200 million upon listing, based on comparable businesses, he said.

Shares of Oldtown, which makes instant coffee and runs cafes, have risen 18 per cent in Kuala Lumpur trading over the past 12 months. Shares of Thai dessert chain After You, which raised US$21 million in a Bangkok IPO last month, have surged 167 per cent from their offer price.

More than one million customers dine at the PappaRich outlets monthly, according to its website. The company has about 100 outlets globally including locations in Malaysia, Singapore, China, Australia, New Zealand and the United States, the website shows.

BLOOMBERG