KUALA LUMPUR: Food and beverage (F&B) service café chain operator, Oriental Kopi Holdings Berhad yesterday debuted on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).
At the opening bell, Oriental Kopi’s share price 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 after the initial public offering (IPO) was oversubscribed by 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 the distribution and retailing of its packaged foods brands as well as café chain operations. The group’s café chain operates under the Oriental Kopi brand, offering food and beverage (F&B) services and in-store sales of its own brand of packaged foods.
With its first café established in December 2020, Oriental Kopi has rapidly expanded its presence, operating 19 owned-and-operated Oriental Kopi cafés across Malaysia.
Through a joint venture arrangement with Paradise Group Holdings Pte Ltd, the group recently launched its first overseas café in Singapore’s vibrant Bugis Junction.
Apart from its café operations, the group manages an exclusive retail store located at St Giles Southkey Hotel, Johor.
The group’s cafes are strategically located in high-traffic areas, including shopping malls, shop venues and the retail malls of Kuala Lumpur International Airport 2.
Managing director Datuk Chan Jian Chern said: “Today is a defining moment for Oriental Kopi as we begin an exciting new chapter as a publicly listed company.
“Over the past four years, our team’s dedication, hard work and passion have led us to achieve this remarkable feat. With the proceeds from our IPO, we are strategically positioned to accelerate our growth and capitalize on new opportunities in the F&B industry.”
He said their IPO plans include setting up a new head office, central kitchen and warehouse (new operational facility) in Selangor, spanning approximately 108,448 sq ft.
“This facility will enable us to centralize our management functions, streamline our F&B operations and increase warehousing and distribution efficiency.
“To support this initiative, RM53.7 million (29.2%) of the total RM184.0 million IPO proceeds has been allocated to the new operating facility.
“This will facilitate the continued expansion of our café chain across Malaysia, the growth of our packaged food segment and the implementation of strategic marketing initiatives to strengthen our presence in international markets,” he said.
He said the remaining IPO proceeds will be allocated as follows: RM75.8 million (41.2%) to fund their working capital requirements, RM36.4 million (19.8%) to fund the expansion of their café 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 ending September 30, 2021 (FY2021) to RM277.3 million in the financial year ending September 30, 2024 (FY2024), a 3-year compound represents. Annual growth rate (CAGR) approximately 280.9%. Meanwhile, profit after tax (net profit) improved significantly, turning from a loss after tax of RM0.5 million to a net profit of RM43.1 million.
Million in the same period.
Looking ahead, Chan said they are well-positioned to capture the growth potential presented by economic expansion, rising household spending and growing tourism.
Alliance Islamic Bank Berhad is the principal advisor, sponsor, sole underwriter and placement agent for the IPO exercise.
