Why JFC choose to list its international business in Hong Kong, than the US #intelligentinvesting
JFC chose to list its international business in Hong Kong rather than the US due to more active fundraising markets, better valuations for international subsidiaries, and the presence of Asian fund managers more familiar with the Asian brands in JFC's portfolio.
Summary
The transcript discusses JFC's strategic decision to list its international business in Hong Kong instead of the US. The speaker identifies three primary reasons for this choice. First, Hong Kong offers more active fundraising opportunities compared to the current US market environment. Second, JFC's international subsidiaries would likely receive better valuations in Hong Kong, as the Hong Kong market may assign higher values to these assets. Third, and most significantly, many of the brands owned by Jollibee (JFC's parent company) are Asian brands, including Chinese and Korean brands, which are primarily held and operated in Asia. By listing in Hong Kong, JFC would target Asian fund managers and investors who have existing familiarity with these brands. This regional expertise and brand recognition would likely result in investors being willing to pay premium prices for JFC's international business compared to listing in the US, where such familiarity might be lower.
About this episode
Why might JFC choose to list its international business in Hong Kong rather than the US? 💭 Let's discuss! Watch the latest full episode of Intelligent Investing on YouTube @apriltanofficial. #IntelligentInvesting #MarketUpdates #AprilLeeTan #MarketPH #AprilTan
Key Insights
- Hong Kong offers more active fundraising opportunities for international business compared to the US market
- Jollibee's international subsidiaries would likely receive better valuations in Hong Kong versus the US
- Listing in Hong Kong allows JFC to target Asian fund managers who are already familiar with the Chinese and Korean brands in Jollibee's portfolio, making them willing to pay higher prices for the international business
Topics
Transcript
[0:00] What are some reasons why JFC would want to list its international business in Hong Kong instead of the US? >> As the article said, it could be the more active fundraising in Hong Kong instead of the US. I think Jollibee could potentially earn better valuations for its international subsidiaries in Hong Kong versus the US. We can also think about the possibility that the brands [music] that Jollibee owns are more popular in Asia because a lot of [0:31] them are actually held in Asia. So we have these >> [music] >> Chinese brands, Korean brands. So if they list in Hong Kong, then potentially [music] you would be targeting more of the Asian fund managers who…
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