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 been oversubscribed by approximately 60.0 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
The approximately 60-times oversubscription rate reflects a total subscription value of RM1.6 billion at an initial public offering (“IPO”) price of RM0.44 per share. Upon listing, Oriental Kopi is anticipated to achieve a market capitalisation of RM880.0 million, based on the aforementioned IPO price and an enlarged share base of 2.0 billion ordinary shares.
Oriental Kopi, through its subsidiaries (collectively known as the “Group”), is primarily involved in cafe chain operations as well as the distribution and retail of its brands of packaged foods. The Group’s cafe chain operates under the Oriental Kopi brand providing F&B services and in-store sales of its brands of packaged foods.
Established in December 2020, Oriental Kopi has experienced rapid growth, operating a network of 19 owned-and-operated Oriental Kopi cafes across Malaysia. These cafes are strategically located in locations such as shopping malls, shop lots, and Kuala Lumpur International Airport 2 airport retail mall.
In a joint venture arrangement with Paradise Group Holdings Pte Ltd, the Group has recently commenced its first oversea cafe in Singapore’s bustling Bugis Junction. Additionally, the Group operates 1 specialty retail store in St. Giles Southkey Hotel in Johor.
Oriental Kopi’s initial public offering (“IPO”) comprises a public issue of 418.1 million new ordinary shares (“Issue Shares”) at an issue price of RM0.44 per share. This represents 20.9% of the enlarged share capital, with RM184.0 million expected to be raised.
In respect of the 60.0 million Issue Shares allocated to the Malaysian public, Oriental Kopi has received a total of 66,041 applicants for 3,657,610,800 Issue Shares with a value of approximately RM1,609.3 million, representing an overall oversubscription rate of approximately 60.0 times.
- For the Bumiputera portion, a total of 10,156 applications for 695,882,800 Issue Shares were received, representing an oversubscription rate of 22.20 times.
- For the public portion, a total of 55,885 applications for 2,961,728,000 Issue Shares were received, representing an oversubscription rate of 97.72 times.
The 20.0 million Issue Shares made available for application by the eligible directors, employees and persons who have contributed to the success of the Group have been fully subscribed.
Meanwhile, for the private placement, the 88.1 million Issue Shares allocated to selected investors, as well as the 250.0 million Issue Shares allocated to the selected Bumiputera investors approved by Ministry of Investment, Trade and Industry of Malaysia (“MITI”) have also been fully placed out.
Notices of allotment will be posted to all successful applicants by 21 January 2025.
Managing Director of Oriental Kopi, Dato’ Chan Jian Chern (拿督陈建丞) said, “We are pleased and encouraged by the overwhelming response to our IPO, which reflects public confidence in the Oriental Kopi brand, the quality of our offerings, and the exciting growth prospects we have ahead. The funds raised will empower us to accelerate our expansion plans to meet the increasing demand for our F&B products and services.”
“The majority of the IPO proceeds, amounting to RM75.8 million (41.2%), will be used to supplement our working capital requirements. RM53.7 million (29.2%) will be used for the establishment of a new head office, central kitchen and warehouse, while RM36.4 million (19.8%) will go towards expanding our cafe chain across Malaysia. Additionally, RM5.0 million (2.7%) is earmarked for the expansion of our packaged foods segment, RM5.5 million (3.0%) for marketing activities in foreign markets, and RM7.6 million (4.1%) to defray our listing expenses.”
“With these IPO proceeds, we are well-positioned to capitalise on growth opportunities driven by economic expansion, improved household spending, and increasing tourist arrivals and spending. We remain committed to deliver high-quality Malaysian cuisine and are confident that our strategic initiatives will generate long-term value for shareholders while further solidifying Oriental Kopi’s leadership in Malaysia’s F&B services industry,” Dato’ Calvin concluded.
Oriental Kopi is scheduled to be listed on the ACE Market of Bursa Securities on Thursday, 23 January 2025.
Alliance Islamic Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercise.
