April 19, 2024

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[THE INVESTOR] Korea’s top chicken franchise operator Kyochon F&B announced on March 13 it intends to go public soon.

“By going public, we will further expand our transparency and take a lead in the franchise industry,” Chairman Kwon Won-kang Kwon said during its 27th anniversary event in Jincheon, North Chungcheong Province.

Kwon currently owns the entire stake in Kyochon, whose sales last year are estimated to have reached around 300 billion won (US$281.53 million).

“Mirae Asset Daewoo is currently the most likely candidate for managing our IPO,” a Kyochon F&B spokesperson told The Investor.

Concerning the timeframe, the company said it is too early to specify details.

Kyochon F&B was launched in March 1991 as a fried chicken restaurant in Daegu City, south of Seoul. Now, the firm has over 1,030 outlets in Korea and runs around 27 overseas stores in six different countries, including the US and China.

However, the firm’s overseas business has not been very steady. In 2015, the company had to close down its money-losing outlet in Tokyo, and another one in New York in 2017. In China, it was accused of signing an unfair master franchise contract.

Some industry watchers are forecasting it will attempt further overseas expansion following an IPO, but the firm declined to confirm such plans.

By Song Seung-hyun (ssh@heraldcorp.com)