JFC’s Highlands Coffee eyes Vietnam IPO by 2027

By Alexandria Grace C. Magno, Reporter

JOLLIBEE FOODS CORP. (JFC) said its subsidiary Highlands Coffee’s board is evaluating a standalone initial public offering (IPO) and listing in Vietnam, with a target completion by the first quarter of 2027.

The company said in a disclosure on Wednesday that Highlands Coffee’s proposed IPO will provide access to capital markets to fund growth, boost its profile, and allow better focus on strategy and operations as Vietnam’s leading coffee brand in Southeast Asia.

“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,” JFC said.

Since JFC’s investment in 2012, Highlands Coffee has expanded from 56 stores to nearly 1,000.

The company noted that Vietnam’s equity market has recorded some of the fastest liquidity growth in the region, fueled by rising retail investor participation. The country targets roughly 9 million retail investor accounts by 2025 and 11 million by 2030, signaling deeper market engagement.

“This underscores the market’s expanding depth and relevance for consumer‑focused growth companies. The proposed IPO creates a platform for exponential shareholders’ value creation in a very dynamic capital market,” it added.

Highlands Coffee has hired international and local advisors and begun defining the structure, process, and timing for a potential IPO.

The transaction depends on market conditions, completion of diligence and internal restructuring, and obtaining all required regulatory and legal approvals in relevant jurisdictions.

“A Vietnam listing for Highlands Coffee enhances valuation clarity for JFC, potentially supporting a share price re-rating and unlocking additional value,” AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said in a Viber message.

“We think this simply suggests that the group wants to get into the deeper capital pools and investor appetite that other exchanges can offer,” Unicapital Securities Equity Research Analyst Jeri R. Alfonso said in a separate Viber message.

In 2023, Jollibee Group Chief Financial and Risk Officer and Jollibee Group International Chief Executive Officer (CEO) Richard Shin said Highlands Coffee could be listed separately on the stock market.

However, he emphasized that the IPO would only proceed at the appropriate valuation and timing that would benefit shareholders.

In 2016, JFC, through its subsidiary JSF Investments Pte. Ltd., partnered with Viet Thai International Joint Stock Co. with the aim of listing SuperFoods on the Vietnam Stock Exchange by 2019. The listing did not push through following JFC’s $350-million acquisition of The Coffee Bean & Tea Leaf that same year.

In June last year, JFC said the planned IPO of its Vietnamese coffee brand, Highlands Coffee, remained under consideration, though not as a standalone entity.

At the local bourse on Wednesday, JFC shares fell 3.07% to P195.60 apiece.