KUALA LUMPUR: Food and beverage (F&B) services cafe chain operator, Oriental Kopi Holdings Berhad, yesterday debuted on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).
At the opening bell, the share price of Oriental Kopi opened at 75 sen, representing a premium of 70.5% over the issue price of 44 sen, with an opening volume of 65,584,700 shares.
This strong market debut comes on the heels of an initial public offering (IPO) oversubscription of approximately 60.0 times, underscoring the high level of confidence in Oriental Kopi’s business operations and growth prospects.
Oriental Kopi, through its subsidiaries, is primarily engaged in cafe chain operations, alongside the distribution and retail of its brands of packaged foods. The Group’s cafe chain operates under the Oriental Kopi brand, offering food & beverages (F&B) services and in-store sales of its brand of packaged food.
With its first cafe established in December 2020, Oriental Kopi has swiftly expanded its presence, operating 19 owned-and-operated Oriental Kopi cafes across Malaysia.
Through a joint venture arrangement with Paradise Group Holdings Pte Ltd, the Group has recently commenced its first oversea cafe in Singapore’s vibrant Bugis Junction.
In addition to its cafe operations, the Group manages a specialty retail store located in St. Giles Southkey Hotel, Johor.
The Group’s cafes are strategically situated in high-traffic areas, including shopping malls, shop lots, and Kuala Lumpur International Airport 2’s retail mall.
Managing director Datuk Chan Jian Chern said: “Today marks a defining moment for Oriental Kopi as we embark on an exciting new chapter as a publicly listed company.
“Over the past four years, our team’s dedication, hard work, and passion have propelled us to achieve this remarkable milestone. With the proceeds from our IPO, we are strategically positioned to accelerate our growth and seize new opportunities in the F&B industry.”
He added that their IPO plans include establishing a new head office, central kitchen, and warehouse (new operational facility) in Selangor, spanning approximately 108,448 square feet.
“This facility will enable us to centralise our management functions, streamline our F&B operations, and enhance storage and distribution efficiency.
“To support this initiative, RM53.7 million (29.2%) of the total RM184.0 million IPO proceeds, has been allocated for the new operational facility.
“This will facilitate the continuous expansion of our cafe chain across Malaysia, the growth of our packaged foods segment, and the implementation of strategic marketing initiatives to strengthen our presence in international markets,” he added.
The remaining IPO proceeds, he said will be allocated as follows: RM75.8 million (41.2%) to supplement their working capital requirements, RM36.4 million (19.8%) for the expansion of their cafe chain across Malaysia, RM5.0 million (2.7%) for the growth of their packaged
foods segment, RM5.5 million (3.0%) for marketing activities in international markets, and RM7.6 million (4.1%) to cover their listing expenses.
On the financial front, Oriental Kopi’s revenue grew from RM5.0 million in the financial year ended Sept 30, 2021 (FY2021) to RM277.3 million in the financial year ended Sept 30, 2024 (FY2024), representing a 3-year compound annual growth rate (CAGR) of approximately 280.9%. Meanwhile, profit after tax (net profit) improved significantly, transitioning from a loss after tax of RM0.5 million to a net profit of RM43.1
million over the same period.
Looking ahead, Chan said they are well-positioned to capture the growth potential presented by economic expansion, rising household spending, and increasing tourism.
Alliance Islamic Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercise.
