SINGAPORE: QSR Brands, which operates the Kentucky Fried Chicken franchise in Malaysia, has shelved plans for an initial public offering (IPO) that could have raised as much as RM2 billion as potential investors balked at its valuations, sources familiar with the deal told Reuters.

QSR, backed by the state investment arm of Johor and private equity firm CVC, had marketed the IPO to funds as anchor shareholders in the last few weeks.

But they said the roughly 25 times forward earnings multiple being pitched was steep, said two of the sources, adding that sluggish markets also impacted the offering.

The sources declined to be identified as news of the IPO being shelved is not public.

There was no immediate response from QSR to a Reuters query.