KUALA LUMPUR (Jan 14): The initial public offering of cafe chain operator Oriental Kopi Holdings Bhd, set to be listed on Jan 23 on the ACE Market of Bursa Malaysia, has attracted RM1.61 billion worth of retail interest — nearly nine times the RM183.96 million it was looking to raise from the IPO.
The 60 million shares it allocated for the public under its IPO were oversubscribed by 59.96 times, with 66,041 applications received seeking 3.66 billion new shares at an issue price of 44 sen apiece, according to Tricor Investing & Issuing House Services Sdn Bhd in a statement issued Tuesday on behalf of Oriental Kopi.
Of the applications received, the Bumiputera portion received 10,156 applications for 695.88 million shares, representing an oversubscription of 22.2 times. The non-Bumiputera portion recorded 55,885 applications for 2.96 billion shares, representing an oversubscription rate of 97.72 times.
Including the 60 million public portion, Oriental Kopi's IPO involved a total issuance of 418.1 million new shares, of which 250 million were set aside for private placement to Bumiputera investors and 88.1 million to selected investors, while 20 million were pink form allocations. All have been fully placed out and subscribed.
There is no separate sale of existing shares.
The IPO shares represent 20.9% of its enlarged issued shares of two billion upon listing. The company is expected to have a market capitalisation of RM880 million post-listing.
Tricor said notices of allotment will be posted to all successful applicants on Jan 21.
The company 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 packaged food segment brands and defraying listing expenses.
Established in December 2020, Oriental Kopi now has 20 cafes across Malaysia and one in Singapore. It 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.
Alliance Islamic Bank is its IPO’s principal adviser, sponsor, sole underwriter and placement agent.