Oriental Kopi Holdings Bhd, whose share price has slid nearly 30% year-to-date, has announced its overseas expansion plans into Indonesia and Mauritius.
The ACE Market-listed food and beverage chain operator said in a bourse filing that it will enter Indonesia through a joint venture with PT Era Boga Nusantara to develop and operate Oriental Kopi restaurants in the country.
Its indirect wholly owned subsidiary, Oriental Coffee International Sdn Bhd, will invest US$480,000 (RM1.96 million) for a 40% stake, while its Indonesian partner will hold the remaining 60%.
The joint venture company, PT Era Oriental Kopi, will focus on opening restaurants across Indonesia, prioritising Jakarta while excluding Medan and airport locations. The first outlet is scheduled to commence operations within a year of the agreement being signed.
Oriental Kopi said the partnership will allow it to tap its Indonesian partner’s local market knowledge and business network. The investment will be funded through internal funds and/or bank borrowings.
Separately, in Mauritius, the company said in another bourse filing that it has granted Coffee Time Ltd exclusive franchise rights to develop and operate Oriental Kopi restaurants on the island, marking its entry into the market through an asset-light expansion model.
Under the six-year franchise agreement, Coffee Time will pay franchise fees and monthly royalties to Oriental Kopi for each restaurant it operates, with the first outlet required to commence business within 300 days of the agreement.
Both transactions are not expected to have a material impact on Oriental Kopi’s earnings, net assets or gearing for the financial year ending Sept 30, 2026, although the company expects them to contribute positively to future earnings.
Oriental Kopi’s share price has been on a downward trend since early January, roughly a year after its debut on Bursa Malaysia at an initial public offering price of 88 sen. The stock has fallen from its year-high of RM1.49 on Jan 19 to a low of 88 sen in mid-July. It closed at 99.5 sen on Thursday, valuing the group at RM1.99 billion — with approximately RM800 million in market capitalisation erased since the start of 2026.
