KUALA LUMPUR (Dec 12): Food and beverage services cafe chain operator Oriental Kopi Holdings Bhd on Thursday signed an underwriting agreement with Alliance Islamic Bank Bhd for its proposed initial public offering (IPO) on the ACE Market of Bursa Malaysia.
Oriental Kopi is scheduled to be listed on Bursa by the first quarter of 2025, with Alliance Islamic Bank as the principal adviser, sponsor, sole underwriter and placement agent for the IPO, it said in a statement.
“We are thrilled to be one step closer to our upcoming listing on the ACE Market of Bursa Securities. This milestone will provide us with the necessary resources and platform to accelerate our growth and strengthen our brand presence,” Oriental Kopi managing director Datuk Chan Jian Chern said.
The company intends to use IPO proceeds for establishing a head office, central kitchen, and warehouse, expanding its cafe network across various states in Malaysia, expanding its packaged food segment, as well as marketing activities in foreign countries.
Oriental Kopi’s IPO will comprise a public issuance of 418.1 million new shares, representing 20.9% of its enlarged issued shares of two billion upon listing. There is no separate tranche for the sale of existing shares.
Out of the 418.1 million shares, 60 million shares are available to the Malaysian public via balloting, 20 million shares to its eligible directors, employees as well as persons who have contributed to the company’s success.
Another 88.1 million shares will be made available to selected investors, and the remaining 250 million shares will be made available to Bumiputera investors, as approved by the Ministry of Investment, Trade and Industry (Miti) — both by way of private placement.
Alliance Islamic Bank, meanwhile, will underwrite a total of 80 million shares made available to the Malaysian public.
Established in December 2020, Oriental Kopi has rapidly expanded its footprint, operating 19 owned-and-operated Oriental Kopi cafes across Malaysia and one in Singapore.
These cafes are strategically located in various settings, including shopping malls, shop lots, and Kuala Lumpur International Airport 2 airport retail mall. Additionally, the company operates one specialty retail store in Johor.