Kavan Choksi on the Americana Group Considering Public Share Sales in UAE and Saudi Arabia

The Americana Group, also known as The Kuwait Food Company, is the largest food manufacturing and distribution company in the UAE. It operates thousands of fast-food chains throughout the Middle Eastern and Northern African regions. Kavan Choksi explains that the Americana Group introduced quick-serving restaurants to the UAE in the 70s.

 

The Americana Group is owned by the investment consortium led by Mohammed Alabbar and Saudi Arabia's Public Investment Fund. The company made headlines in April when its shareholders announced the possibility of an IPO on the UAE or Saudi Arabia bourse.

The Americana Group plans on making an IPO on the Abu Dhabi Securities Exchange (ADX) and Saudi Stock Exchange (Tad?wul). Since the company has subsidiaries in both regions, it is expected to do well in both markets. Kavan Choksi shares that at this point, the Americana Group only needs to decide between a primary and a dual listing.

 

Partner Investment Banker

The American Group disclosed that they hired Rothschild & Co. as their partner investment bank, although the latter refused to comment publicly on this new partnership. Rothschild & Co. will advise the company's shareholders on the pros and cons of making an IPO and selling public shares. 

 

The shareholders haven't finalized their plans yet. If Rothschild & Co. highlight the disadvantages of making an IPO during these turbulent times, they might pull out of the bourse altogether.

 

Bottom Line

Overall, Kavan Choksi believes that the Americana Group will benefit from a dual listing. The company generates funding from both the ADX and Tad?wul. However, its primary shareholders will still have total control over company activities and decisions, thus retaining quality control across subsidiaries.

 

However, the company needs to collaborate closely with its partner investment bank or risk overfunding. The company's fast-food restaurants are widely known across the Middle Eastern region and are likely to attract millions of investors' attention.