KUALA LUMPUR: Food and beverage (“F&B”) services cafe chain operator, Oriental Kopi Holdings Berhad (“Oriental Kopi” or the “Company”) (“华阳餐飲集团”), has successfully debuted on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). The stock is categorized under the Consumer Products & Services sector and trades under the stock name KOPI with the stock code 0338.
Expanding Cafe Operations and Packaged Food Business
Oriental Kopi, through its subsidiaries (collectively referred to as the “Group”), primarily operates cafe chains and distributes and retails its brands of packaged foods. The Group’s cafes, branded as Oriental Kopi, offer food & beverage (“F&B”) services and sell its packaged food products in-store.
Since opening its first cafe in December 2020, Oriental Kopi has grown rapidly, currently operating 19 owned-and-operated cafes across Malaysia. The Group has also expanded internationally with its first overseas cafe in Singapore’s vibrant Bugis Junction, established through a joint venture with Paradise Group Holdings Pte Ltd. In addition, Oriental Kopi manages a specialty retail store located in St. Giles Southkey Hotel, Johor. Its cafes are strategically located in high-traffic areas such as shopping malls, shop lots, and the retail mall at Kuala Lumpur International Airport 2.
Strong Market Debut
At the opening bell, Oriental Kopi’s share price opened at 75 sen, marking a 70.5% premium over its IPO issue price of 44 sen, with an opening trading volume of 65,584,700 shares. This impressive debut follows an oversubscription of approximately 60 times during its IPO, reflecting strong investor confidence in the Company’s business model and growth potential.
Strategic Growth Plans
Dato’ Chan Jian Chern (拿督陈建丞), Managing Director of Oriental Kopi, remarked:
“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.”
A significant portion of the IPO proceeds, amounting to RM53.7 million (29.2%), will be allocated to establish a new head office, central kitchen, and warehouse (“New Operational Facility”) in Selangor. The facility, spanning approximately 108,448 square feet, will centralize management functions, streamline F&B operations, and enhance storage and distribution efficiency.
Allocation of IPO Proceeds
The remaining IPO proceeds are allocated as follows:
- RM75.8 million (41.2%) for working capital requirements
- RM36.4 million (19.8%) for cafe chain expansion across Malaysia
- RM5.0 million (2.7%) for growing the packaged foods segment
- RM5.5 million (3.0%) for marketing activities in international markets
- RM7.6 million (4.1%) to cover listing expenses
Impressive Financial Growth
Oriental Kopi has demonstrated remarkable financial growth:
- Revenue increased from RM5.0 million in FY2021 to RM277.3 million in FY2024, achieving a 3-year compound annual growth rate (CAGR) of 280.9%.
- Profit after tax improved significantly, transitioning from a loss of RM0.5 million to a net profit of RM43.1 million during the same period.
Future Outlook
Dato’ Chan added:
“Looking ahead, we are well-positioned to capture the growth potential driven by economic expansion, rising household spending, and increasing tourism. Our dedication to serving authentic, high-quality Malaysian cuisine, coupled with targeted strategic initiatives, will drive sustainable long-term value for our shareholders while reinforcing Oriental Kopi’s position in Malaysia’s F&B industry.”
IPO Advisors
Alliance Islamic Bank Berhad acted as the Principal Adviser, Sponsor, Sole Underwriter, and Placement Agent for the IPO exercise.
