Empire Premium Food Bhd , the operator of the Empire Sushi chain , has launched its Main Market IPO , aiming to raise RM254 million to fund aggressive expansion across Malaysia. IPO Details and Valuation The offering is indicatively priced at 70 sen per share , implying a market capitalisation of RM770 million and a valuation of 20.3 times FY2025 earnings . RM152.6 million will go to the company RM96.3 million will be raised by existing shareholders (founders) Listing is scheduled for April 17 , with pricing on April 7 For FY2025, the group reported: Net profit: RM37.9 million Revenue: RM235.6 million Expansion Strategy Drives Growth Story A key IPO driver is Empire’s aggressive outlet expansion plan . The group aims to open 56 new outlets over the next three years , focusing on high-traffic locations such as: Shopping malls Airports Transit hubs More than 51% of IPO proceed...
Empire Premium Food Bhd, the operator of the Empire Sushi chain, has launched its Main Market IPO, aiming to raise RM254 million to fund aggressive expansion across Malaysia.
IPO Details and Valuation
The offering is indicatively priced at 70 sen per share, implying a market capitalisation of RM770 million and a valuation of 20.3 times FY2025 earnings.
- RM152.6 million will go to the company
- RM96.3 million will be raised by existing shareholders (founders)
- Listing is scheduled for April 17, with pricing on April 7
For FY2025, the group reported:
- Net profit: RM37.9 million
- Revenue: RM235.6 million
Expansion Strategy Drives Growth Story
A key IPO driver is Empire’s aggressive outlet expansion plan.
The group aims to open 56 new outlets over the next three years, focusing on high-traffic locations such as:
- Shopping malls
- Airports
- Transit hubs
More than 51% of IPO proceeds (RM79.1 million) will be allocated to expansion.
New outlets offer quick payback periods of around nine months, with setup costs ranging between:
- RM550,000 (grab-and-go format)
- RM1 million (quick dining format)
Operational Efficiency Supports Margins
To navigate rising costs, the company focuses on menu optimisation and operational discipline.
- Quarterly menu refreshes to improve margins
- Food wastage maintained at ~7%
- Strong emphasis on standardised operations and training
The group expects same-store sales growth of 3%–5%, supported by seasonal demand in the second half.
Halal Positioning and Talent Focus
Nearly all outlets are halal-certified, strengthening appeal to Malaysia’s core consumer base.
Management also emphasised:
- Quality control over franchising
- Using IPO proceeds to attract talent and strengthen operations
Use of IPO Proceeds
In addition to expansion:
- 34.1% (RM52.1 million) for working capital
- 8.3% (RM12.6 million) for outlet upgrades
- Remaining for listing expenses
Investor Takeaways
- Empire Premium Food is raising RM254 million to fund a nationwide expansion strategy.
- The IPO values the company at 20.3x earnings, positioning it as a growth-oriented F&B play.
- Strong unit economics with ~9-month payback per outlet support scalability.
- Focus on prime locations, halal positioning, and operational efficiency underpins growth.
- Key risks include execution of expansion, cost pressures, and maintaining product quality at scale.
Comments
Post a Comment