Abraaj cashes in on Thai investment

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Dubai-based investment firm Abraaj Group announced on December 19 that it has exited its investment in the Thai restaurant chain Hot Pot through an initial public offering (IPO) on the local Thai stock exchange.

Abraaj, which in total has around $7.5 billion in assets under management, invested $2.96 million in Hot Pot parent Suki Shabu in 2006. Since then, the chain’s revenues have grown at an impressive annual growth rate of 25 per cent and restaurant branches have expanded from 58 to 126.

The IPO on September 18, 2012 was three times oversubscribed. The share price started at 3.90 baht and was peaking at 4 baht before closing at 3.80 baht, well above the IPO price of 2.80 baht. 460 million shares were sold. At close on December 19, the stock price stood at 4.06 baht and the market capitalisation at around $55 million.

Abraaj did not disclose the profit it made from the deal.

Abraaj Group’s investment in the Suki Shabu restaurant group was based on an expectation that demographic trends in Thailand, combined with an explosion in disposable income amongst even the moderately well off, would provide a fast-growing clientele for the restaurant. Within five years of the investment, the average number of customers per month grew from 250,000 to 570,000.

The Hot Pot IPO is yet another successful exit for Abraaj’s first South East Asia Fund Aureos Capital. Earlier this year, the group sold its stake in Yupi, a leading Indonesian confectionary company and exited its investment in Cirtek Electronics, a semi-conductor business, through an IPO on the Philippine Stock Exchange .

Abraaj’s current holdings include Egyptian healthcare firm Al Borg Laboratories, Saudi Arabia-based medical company Tadawi, Air Arabia, Orascom Construction Industries and GEMS Education.

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Reading Time: 2 minutes

Dubai-based investment firm Abraaj Group announced on December 19 that it has exited its investment in the Thai restaurant chain Hot Pot through an initial public offering (IPO) on the local Thai stock exchange.

Reading Time: 2 minutes

Dubai-based investment firm Abraaj Group announced on December 19 that it has exited its investment in the Thai restaurant chain Hot Pot through an initial public offering (IPO) on the local Thai stock exchange.

Abraaj, which in total has around $7.5 billion in assets under management, invested $2.96 million in Hot Pot parent Suki Shabu in 2006. Since then, the chain’s revenues have grown at an impressive annual growth rate of 25 per cent and restaurant branches have expanded from 58 to 126.

The IPO on September 18, 2012 was three times oversubscribed. The share price started at 3.90 baht and was peaking at 4 baht before closing at 3.80 baht, well above the IPO price of 2.80 baht. 460 million shares were sold. At close on December 19, the stock price stood at 4.06 baht and the market capitalisation at around $55 million.

Abraaj did not disclose the profit it made from the deal.

Abraaj Group’s investment in the Suki Shabu restaurant group was based on an expectation that demographic trends in Thailand, combined with an explosion in disposable income amongst even the moderately well off, would provide a fast-growing clientele for the restaurant. Within five years of the investment, the average number of customers per month grew from 250,000 to 570,000.

The Hot Pot IPO is yet another successful exit for Abraaj’s first South East Asia Fund Aureos Capital. Earlier this year, the group sold its stake in Yupi, a leading Indonesian confectionary company and exited its investment in Cirtek Electronics, a semi-conductor business, through an IPO on the Philippine Stock Exchange .

Abraaj’s current holdings include Egyptian healthcare firm Al Borg Laboratories, Saudi Arabia-based medical company Tadawi, Air Arabia, Orascom Construction Industries and GEMS Education.

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