Collins Food to deliver largest IPO

It appears that based on the recent economic conditions have fast tracked the path to deliver the one of the largest IPOs later this year for Collins Food Group who are behind 145 Sizzler & KFC stores in Australia.  The IPO figures released last week value CFG are around $233 million when the stock debuts in the first week of August it has managed to attract a number of international investors from Asia & the pacific region.

Part of the downturn in the economy has meant that people are busier and working more hours to ensure they keep their jobs so take away food is a suitable stop gap solution for dinning options.  KFC is expected to grow into 2012 and accounts for around 74% of CFGs sales bringing in around $430 million. This extra fund raising will be likely used to expand the number of food franchise locations but may also be used for consolidation of smaller players and purchasing of new master franchise agreements from US/UK operators.

The IPO is a different path for expansion to the recent sale of Quick Service Restaurant Holdings by Quadrant Private equity to Archer capital for around $450 million. QSR Holdings is the operator of the competing Red Rooster, Oporto & Chicken treat stores that have made an aggressive international move into China and the USA.  So it will be interesting to see if this move back towards IPOs will be rewarded or if the risk does not outweigh the possible complications of being a public company in a competitive market, but does give private equity a nice exit plan.