KUALA LUMPUR: Through its subsidiaries, Oriental Kopi Holdings Bhd operates café chains and engages in the distribution and retailing of its own branded packaged foods.
Oriental Kopi’s IPO is expected to raise RM184 million, allocated as follows:
- 29.2% for setting up a new head office, central kitchen, and warehouse,
- 19.8% for expanding the café chain in Malaysia,
- 2.7% for the expansion of the packaged foods segment,
- 3% for marketing activities in foreign countries,
- 41.2% for working capital, and
- 4.1% for listing expenses.
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 as follows:
- 60 million shares for the Malaysian public via balloting,
- 20 million shares for eligible directors, employees, and contributors to the group’s success,
- 88.1 million shares for private placement to selected investors, and
- 250 million shares for private placement to Bumiputera investors approved by the Investment, Trade, and Industry Ministry.
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’s 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,” Koay said during a press conference following the prospectus launch.
Koay mentioned that the central kitchen will handle food production, while final preparation will 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 cafés in Singapore by 2025.
“We are also exploring opportunities to expand into neighbouring countries,” Koay added, 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), representing 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 café chain operations, while the remaining 5.9% came from the distribution and retail of packaged foods and other segments.
