KUALA LUMPUR (Jan 6): Cafe chain operator Oriental Kopi Holdings Bhd set its initial public offering (IPO) price at 44 sen apiece in a share sale that would raise RM183.96 million ahead of its listing on the ACE Market.
At the IPO price, Oriental Kopi is expected to have a market capitalisation of RM880 million upon listing and value the company at about 20 times its earnings for the financial year ended Sept 30, 2024 (FY2024).
Applications will close on Jan 10, and listing has been scheduled for Jan 23.
Established in December 2020, the company has rapidly expanded its footprint with 20 cafes across Malaysia and one in Singapore. Oriental Kopi also sells in-store packaged coffee and tea, as well as other food such as spreads, pastries, instant noodles, and seasonal items such as moon cakes.
Oriental Kopi has earmarked RM75.78 million of the IPO proceeds for working capital and RM53.68 million to set up a new head office, central kitchen and warehouse. The company will also use RM36.4 million for the expansion of cafes within Malaysia.
The rest has been allocated to marketing activities in foreign countries, expansion of its brands of packaged food segment, and to defray listing expenses.
The IPO comprises a public issue of 418.1 million new shares. There is no separate tranche for the sale of existing shares.
Under the IPO, the company has set aside 60 million new shares for the public and 20 million shares for eligible persons. Oriental Kopi will also sell 88.1 million new shares to select investors and 250 million shares to Bumiputera investors, both through private placement.
Alliance Islamic Bank is the IPO’s principal adviser, sponsor, sole underwriter and placement agent.