KUALA LUMPUR -- Malaysia's Loob Holding, which owns the Tealive bubble tea brand, is postponing its planned initial public offering slated for this year to at least mid-2021, citing weak market sentiment.
"We have delayed our IPO to next year because market sentiment is not right," Loob Holding CEO Bryan Loo told DealStreetAsia. "And we want to ramp up [a] few new business funnels before listing next year. Definitely mid-next year or later."
DealStreetAsia understands that CIMB Investment Bank and RHB Investment Bank have been appointed as advisers for the IPO.
The Tealive brand has more than 500 outlets in Malaysia. The company also owns other food and beverage brands such as Ko Ko Kai and Define Food.
The Kuala Lumpur-based company has been planning to expand its presence in the fast-moving consumer goods industry, which is expected to serve as a core sector for the company, Loo said. Tealive, which serves bubble tea at its shops and kiosks, collaborated with Unilever's Wall's to launch Boba Milk Tea ice cream during Malaysia's partial lockdown in April.
Tealive has also started selling ready-to-drink milk tea and coffee online following its shift into the fast-moving consumer goods industry. There will be more FMCG products launched in the next six months, Loo added.
"Wall's ice cream has been a runaway success for us, and e-commerce has been serving our model well, too," he said. "We want to dive deep into both funnels before next year's listing."
Bloomberg first reported in May last year that Loob was considering an IPO to raise as much as 300 million ringgit ($70 million) in 2020. As reported then, the group was seeking a valuation of up to 1 billion ringgit. Loo declined to comment on the size of the proposed offering and valuation.
The bubble tea market, valued at $2.4 billion in 2019, is forecast to reach $4.3 billion by 2027, registering a compound average growth rate of 7.8% from 2020 to 2027, according to a report by Allied Market Research.
In Taiwan, La Kaffa International, which owns the Chatime brand, has been listed on the Taipei Exchange since 2015. It has a market capitalization of 5.77 billion New Taiwan dollars ($195.7 million). B&S International Holdings, which runs the TenRen brand and debuted on the Hong Kong stock exchange in 2018, has a market cap of 142 million Hong Kong dollars ($18.32 million).
Loob Holding's IPO postponement comes after Creador-backed Mr. D.I.Y. was reported to have been considering delaying its $500 million IPO.
The Malaysian stock exchange has not seen any listing activity since the March 23 debut of Polydamic Group on the LEAP Market. Reservoir Link Energy debuted on July 15, making it the eighth listing on the market this year.
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