Oriental Kopi brews up RM184 million IPO to fuel expansion plans

Malaysian coffee chain Oriental Kopi is reportedly said to raise RM183.96 million through an initial public offering (IPO) on the Bursa Malaysia Ace market this month. 

According to The Edge Malaysia, Oriental Kopi has reportedly designated RM75.78 million of the IPO funds for working capital and RM53.68 million to establish a new head office, central kitchen and warehouse.  RM36.4 million will also be used for the expansion of cafes within Malaysia. The remaining proceeds have been allocated for marketing activities in foreign countries, expansion of its various packaged food segments, and to cover the cost of listing expenses. 

Don't miss: Petronas plans 'aggressive' expansion in Indonesia

According to The Star, analysts reportedly have positive sentiments about the coffee chains plans of expansion, with reports anticipating higher earnings, net profit and net gearing for the company from the financial year 2025 onwards. Established in 2020, Oriental Kopi currently operates 20 cafes in Malaysia and one in Singapore. A+M has reached out to Oriental Kopi for more information.

The coffee industry in Malaysia has seen a fair bit of competition in recent years. In September last year, ZUS Coffee, Malaysia’s biggest coffee chain operator, raised RM250 million from investors including buyout firm KV Asia Capital as it looked to grow regionally. The investment “signals a new chapter and springboard for ZUS Coffee’s growth”, company had then said.

Related articles:
Yogurt maker Chobani files for IPO
GoTo Group bags US$1.3bn in pre-IPO fundraising
Influencer marketing firm Partipost bags US$5m additional funding, plans Vietnam entry