KUALA LUMPUR: Food and beverage company Oriental Kopi Holdings Bhd today unveiled its prospectus in preparation for its initial public offering (IPO) and subsequent listing on the ACE Market of Bursa Malaysia Securities.
Through its subsidiaries, Oriental Kopi operates cafe chains and engages in the distribution and retailing of its own branded packaged foods.
Oriental Kopi’s IPO is expected to raise RM184 million which will be allocated for setting up a new head office, central kitchen and warehouse (29.2%), expansion of the cafe chain in Malaysia (19.8%), expansion of packaged foods segment (2.7%), marketing activities in foreign countries (3%), working capital (41.2%) and listing expenses (4.1%).
The IPO involves the issuance of 418.1 million new ordinary shares, representing 20.9% of the company’s enlarged issued share capital of 2 billion shares.
The shares are allocated for the Malaysian public via balloting (60 million), eligible directors, employees, and contributors to the group’s success (20 million), private placement to selected investors (88.1 million) and private placement to Bumiputera investors approved by the Investment, Trade, and Industry Ministry (250 million).
Based on the IPO price of 44 sen per share, Oriental Kopi’s market capitalisation is estimated at RM880 million upon listing. Applications for the public issue opened yesterday and will close on Jan 10, with the listing scheduled for Jan 23.
Oriental Kopi executive director Sean Koay Song Leng disclosed that the company is constructing a 108,448 square foot facility in Puchong, Selangor which will house the new head office, central kitchen and warehouse.
“This centralised facility will streamline our management functions, optimise F&B operations and enhance storage and distribution efficiency. It will also help alleviate the kitchen workload at our outlets, especially those with limited kitchen space,” he said in a press conference following the prospectus launch.
Koay said the central kitchen will handle food production, while final preparation will still occur at the outlet kitchens.
As part of its expansion strategy, the company plans to open 13 new outlets across Malaysia this year and two additional cafes in Singapore by 2025.
“We are also exploring opportunities to expand into neighboring countries,” Koay said, underscoring the company’s regional ambitions.
Oriental Kopi has recorded commendable growth, with revenue increasing from RM5 million in the financial year ended Sept 30, 2021 to RM277.3 million in financial year 2024 (FY24). This represents a compound annual growth rate of 280.9% over three years. During the same period, the company transitioned from a loss after tax of RM500,000 to a net profit of RM43.1 million in FY24.
In FY24, 94.1% of the group’s total revenue was derived from cafe chain operations, while the remaining 5.9% came from the distribution and retail of packaged foods and other segments.
