TAB Gida, the master franchisee responsible for Burger King, Popeyes, and various other fast food restaurant chains in Turkey, has obtained the green light for its intended Initial Public Offerings (IPO).
After receiving the green light from Turkey’s Capital Markets Board (SPK), TAB Gida is anticipated to embark on the largest dollar-denominated IPO since 2018, as reported by Reuters.
The report verified that the company plans to make only 20% of its shares available for public offering, while shareholders of TFI TAB Gida Yatirimlari will divest a portion of their shares, coupled with a capital injection.
As per a Bloomberg report, the foodservice company intends to generate approximately Tl6.85 billion (equivalent to $246 million) by vending 52.5 million shares at a price of Tl130 per share.
Following the market’s closure on Thursday, the report, referencing regulatory clearance, disclosed that the IPO comprises nearly 28.9 million new shares, with the parent company TFI TAB Food Investments slated to divest an additional 23.6 million shares.
TAB Gida will allocate the funds from the listing towards the establishment of new restaurants, the installation of a new solar plant, and the reduction of its current financial liabilities.
The foodservices company is expected to disburse Tl215 million in intermediary fees during the IPO.
Moreover, TAB Gida will make around 78% of the shares available to domestic retail investors.
Since 1994, TAB Gıda has been dedicated to fostering the expansion of the quick-service restaurant (QSR) industry in Turkey.
The company currently operates 1,500 fast food restaurant brands across Northern Cyprus, North Macedonia, Turkey and Georgia regions.
TAB Gida operates different fast food restaurant chains such as Arby’s, Popeyes, Sbarro, Subway and more than 700 Burger King outlets.
The Bloomberg report added that TAB Gida’s annual revenue increased by 125% to Tl8.62bn in 2022.
The company’s net income in 2022 stood at Tl361.8m.