ST Group Food secures rights to Nene Chicken brand in NZ

Newly listed ST Group Food Industries Holdings has secured exclusive rights for the Nene Chicken brand in New Zealand, it said after the market closed on Thursday.

ST Group Food entered into a master franchise agreement with Hyein Foods to secure rights to the South Korean fried chicken restaurant franchise. The agreement is for an initial term of 10 years, with an option to renew for a further 10 years.

The deal will expand the Australia-based group's business in New Zealand, where it has 15 outlets under the PappaRich, Gong Cha and Hokkaido Baked Cheese Tart brands.

It also has 26 Nene Chicken outlets across Australia and Malaysia, of which seven are group-owned and 19 owned and operated by its sub-franchisees and sub-licensees.

The Nene Chicken deal came just a day after ST Group Food's debut on the Singapore Exchange's Catalist board. It raised $9.6 million through its initial public offering (IPO), by placing 30.1 million shares and issuing 6.9 million new shares to cornerstone investors.

It closed its first day of trading at 28 cents on Wednesday, up 7.7 per cent from its IPO price of 26 cents.

The stock closed unchanged at 27.5 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on July 06, 2019, with the headline 'ST Group Food secures rights to Nene Chicken brand in NZ'. Print Edition | Subscribe