London - Nando’s Group, the South African fast-food
company known for its spicy chicken and fries, is considering an initial public
offering, according to people familiar with the matter.
Nando’s is speaking to advisers and is in the early
stages of planning a share sale, the people said, asking not to be identified
as the deliberations are private. The company is weighing a London listing
among other potential venues, they said. No final decisions have been made and
the company may look at other ways to raise funds, they said.
Reports about plans for an IPO are incorrect, and the
company isn’t looking at ways to raise money, a spokesman said in an e-mailed
statement.
An overseas IPO would help the Johannesburg-based company,
originally backed by billionaire Dick Enthoven, raise money in a currency other
than South Africa’s rand as it continues to expand globally. A Nando’s IPO
would follow in the footsteps of other South African companies, such as
Steinhoff International Holdings and Brait, which have primary listings outside
the country to hedge against a volatile currency.
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A listing in London would also give Nando’s access to a
large investor base. Companies raised nearly $8 billion from IPOs in the UK
last year, compared with $647 million in South Africa, data compiled by
Bloomberg show.
The company operates restaurants selling peri-peri
chicken in countries including the UK, the US, Australia, India, Malaysia and
Qatar. Nando’s started in South Africa in 1987 after entrepreneurs Robbie
Brozin and Fernando “Nando” Duarte convinced Enthoven to invest in the
Portuguese-styled chain. The company traded on Johannesburg’s stock
exchange until 2003 when managers bought more shares and delisted it.
With more than 1 100 restaurants, the peri-peri chicken
franchise, known in South Africa and the US for making pointed political
statements, has a fan club called “Rate Your Nando’s” and was once described
as “one of the most successful cults in Britain” by UK newspaper the
Telegraph. Tom Sellers, the British chef who has created three restaurants
including Story, last year listed Nando’s as his favourite fast food.