Dubai’s Abraaj exits $3m Thai restaurant stake

Private equity firm exits Hot Pot chain after offering on Thailand's stock exchange
Abraaj Group CEO Arif Naqvi.
By Daniel Shane
Wed 19 Dec 2012 12:43 PM

Dubai-based private equity firm Abraaj Group has exited its investment in Thai restaurant chain Hot Pot following an initial public offering (IPO).

Abraaj, which has around US$7.5bn in assets under management, invested US$2.96m in Hot Pot parent Suki Shabu six years ago. Abraaj has overseen a compound annual growth rate of 25 percent and an increase in its number of restaurants from 58 to 126. Hot Pot’s revenues stood at US$37.72m in 2010.

The IPO on the Stock Exchange of Thailand was more than three times oversubscribed, Abraaj said in a statement on Wednesday.

Abraaj senior partner Omar Lodhi said the share offering was a “great result” in the context of a “globally weak IPO market”.

“We made this investment on the basis that growth in South-East Asia would be fast, sustainable and lead to a dramatic increase in domestic spending – not least in categories such as casual dining,” he added.

Earlier this year, Abraaj sold its stake in Indonesian confectionary firm Yupi and has also existed its investment in semiconductor manufacturer Cirtek Electronics via an IPO on the Philippine Stock Exchange.

Abraaj’s current holdings include Egyptian healthcare firm Al Borg Laboratories, Saudi Arabia-based medical company Tadawi, Air Arabia, Orascom Construction Industries and GEMS Education.

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