What's brewing: Malaysia bubble tea chain plans $98.5m IPO next year

Loob Holding, which owns the Tealive bubble tea brand, is considering seeking a valuation of as much as RM1 billion.
Loob Holding, which owns the Tealive bubble tea brand, is considering seeking a valuation of as much as RM1 billion.PHOTO: SCREENGRAB FROM TEALIVE.COM.MY

KUALA LUMPUR • Loob Holding, which owns the Tealive bubble tea brand, is planning a Malaysian initial public offering (IPO) that could raise as much as RM300 million (S$98.5 million), according to people with knowledge of the matter.

The Kuala Lumpur-based firm has hired advisers for the planned share sale, according to the sources, who asked 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 sources added.

Mr Bryan Loo, Loob Holding's chief executive officer, confirmed the company is planning to list in the first half of next year. "We have engaged corporate advisers for this exercise," Mr Loo said in an e-mailed response to Bloomberg .

"We cannot confirm the valuation sought nor the IPO portion, pending final recommendations from our advisers."

Malaysia has seen US$9.4 million (S$12.9 million) first-time share sales so far this year, far less than the US$47.8 million in the same period last year, 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 and some of its existing shareholders.

  • >200

  • Number of outlets Loob Holding runs in Malaysia. It also owns other food and beverage brands such as Ko Ko Kai and Define Food, and has stores in China, Vietnam and Australia.

Loob Holding will be joining companies like Malaysia KFC operator QSR Brands (M) Holdings 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 sources.

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.

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A version of this article appeared in the print edition of The Straits Times on May 14, 2019, with the headline 'What's brewing: Malaysia bubble tea chain plans $98.5m IPO next year'. Print Edition | Subscribe