Jollibee Foods Corp. is evaluating an initial public offering of its Highlands Coffee business in Vietnam by the first quarter of 2027 to raise up to $400 million in proceeds.
The Philippine fast-food giant said in a disclosure to the stock exchange Wednesday that a listing would support the coffee chain’s next phase of growth by providing direct access to capital for expansion.
The company said the IPO would also sharpen the unit’s strategic and operational focus as a publicly traded entity and unlock shareholder value amid improving liquidity in Vietnam’s equity market.
Highlands Coffee has grown into the largest coffee chain in Vietnam, expanding to nearly 1,000 stores from 56 outlets since Jollibee first invested in 2012.
“Highlands Coffee stands out as one of the most attractive growth and value creation stories within the company’s portfolio, reflecting both strategic M&A success and post-acquisition organic expansion, achieving clear market leadership as the undisputed #1 coffee chain in Vietnam,” Jollibee said.
The company said Vietnam’s equity market liquidity is among the fastest-growing in the region. This growth is supported by accelerating retail investor participation, with the Vietnamese government targeting 11 million retail investor accounts by 2030.
Highlands Coffee has already tapped international and local advisers to study the structure and timing of the proposed offering. While Jollibee previously considered listing the unit’s holding company as early as 2019, those plans were delayed by the Covid-19 pandemic. The latest proposal involves a standalone IPO and listing of Highlands Coffee in Vietnam.
“The transaction, with target completion by the first quarter of 2027, will be subject to prevailing market conditions, completion of appropriate steps including diligence and internal restructuring, and securing all required regulatory and legal approvals across relevant jurisdictions,” Jollibee said.
