Commentary: Jollibee shouldn’t rush its global IPO

Jollibee Foods has successfully established a global fast-food empire over two decades. However, despite the merits of separating its international operations from its domestic business for a public listing, the company should not rush into an IPO anytime soon. Jollibee confirmed plans to spin off the overseas unit and seek a listing in Hong Kong, but has not yet set a timeline.

The company had previously aimed for late next year, but is being cautious. While the international unit is growing rapidly, it is not yet ready to be an independent entity. Separating the businesses would provide clearer investment choices, but the overseas division still harbors challenges. Its North American expansion, for instance, is still in the early stages.

Giving the international business a year to improve before seeking public investment would provide a clearer picture of its profitability and help investors make informed decisions.