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Fore Coffee gets IPO nod amid Indonesian market slide

Fore Coffee gets IPO nod amid Indonesian market slide

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Fore Kopi Indonesia, popularly known as Fore Coffee, has received approval to proceed with its initial public offering (IPO) on the Indonesia Stock Exchange (IDX). The company said that this strategic move is aimed at bolstering its expansion plans and reinforcing its presence in the premium coffee sector.​

Trading under the ticker symbol "FORE," Fore Coffee plans to offer 1.88 billion shares, representing 21.08% of its total issued and fully paid capital. The shares are priced between IDR 160 and IDR 202 each, potentially raising up to IDR 379.8 billion (US$22.9 million). The book-building period occurred from 19 to 21 March 2025, with the public offering scheduled from 26 March to 9 April 2025. The company anticipates listing its shares on the IDX on 11 April 2025.

CEO Vico Lomar expressed optimism about the IPO, stating, "We see a huge opportunity in the Indonesian premium coffee market, and this IPO will give us the resources we need to capitalise on that opportunity."

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Fore Coffee's IPO comes at a time when Indonesia's stock market is experiencing a crisis of confidence. Investor sentiment is at its lowest since the pandemic, with volatility triggering a rare 30-minute trading halt on 18 March.

Yet, instead of retreating, Fore Coffee and its key backers doubled down. Willson Cuaca, co-founder and managing partner at East Ventures (the coffee firm's backer), shared in a LinkedIn post that many industry peers urged them to delay the IPO. However, the team saw it differently.

"If our goal were to optimise for exit, we would wait for the market to recover and aim for the highest possible valuation," Cuaca wrote.

"Our intention, however, is to graduate this company—to prove that we have built a mature, well-run, and predictably profitable business. So why wait?" he added.

This contrarian approach underscores Fore Coffee's confidence in its fundamentals. Rather than chasing a favourable market climate, the company is making a bold statement: a strong business remains strong, regardless of market turbulence.

Fore Coffee intends to allocate approximately 76% of the IPO proceeds to expand its outlet network across Indonesia, aiming to open around 140 new coffee outlets within the next two years. An additional 18% will be used to launch new doughnut outlets through its subsidiary, and the remaining 6% is earmarked for working capital.

Since its inception in 2018, Fore Coffee has rapidly become a significant player in Indonesia's coffee sector. As of September 2024, the company operates 217 outlets across 43 cities in Indonesia and Singapore, having opened 61 new outlets in 2024 alone.

Financially, net sales surged by IDR 418 billion (US$25.2 million) — 135% year-on-year — to IDR 727 billion (US$43.8 million) as of September 2024, up from IDR 309 billion (US$18.6 million) in September 2023. Gross profit increased by 128% year-on-year to IDR 447 billion (US$26.9 million), and EBITDA rose by 187% to IDR 135 billion (US$8.1 million) in the same period. ​

According to a Redseer report from December 2024, the Indonesian coffee market is projected to grow at a compound annual growth rate of 11% over the next five years, potentially reaching a market size of US$12.6 billion (US$758,900).

Fore Coffee's expansion strategy includes diversifying its outlet formats—flagship, medium, and satellite—to cater to varying customer preferences, from social gatherings to grab-and-go services.

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