KUALA LUMPUR (Aug 6): Oriental Kopi Holdings Bhd (KL:KOPI), whose share price has slid nearly 30% year-to-date, announced its overseas expansion plan to Indonesia and Mauritius.
The ACE Market-listed food & beverage chain operator said in the bourse filing that it would enter Indonesia through a joint venture with PT Era Boga Nusantara to develop and operate Oriental Kopi restaurants there.
Its indirect wholly owned subsidiary Oriental Coffee International Sdn Bhd will invest US$480,000 (RM1.96 million) for a 40% stake, while the Indonesian partner will hold the remaining 60%.
The JV company PT Era Oriental Kopi will focus on opening restaurants across Indonesia, prioritising Jakarta while excluding Medan and airport locations. The first outlet is scheduled to begin operations within a year of the agreement.
Oriental Kopi said the partnership will help it tap its Indonesian partner’s local market knowledge and business network. The RM1.96 billion investment will be funded through internal funds and/or bank borrowings.
Over at Mauritius, the company said in a separate bourse filing that it has granted Coffee Time Ltd exclusive franchise rights to develop and operate Oriental Kopi restaurants in Mauritius, marking its entry into the island nation through an asset-light expansion model.
Under the six-year franchise agreement, Coffee Time will pay franchise fees and monthly royalties to Oriental Kopi for each restaurant it operates, with the first outlet required to commence business within 300 days.
Both transactions are not expected to have a material impact on Oriental Kopi's earnings, net assets or gearing for the financial year ending Sept 30, 2026, although the company expects them to contribute positively to future earnings.
Share price of Oriental Kopi has been on a decline early January — around one year after it made its debut at an initial public offer price of 88 sen on Bursa Malaysia.
The stock has tumbled from the year's high of RM1.49 on Jan 19 to a low of 88 sen in mid-July. It closed at at 99.5 sen on Thursday, valuing the group at RM1.99 billion. Some RM800 million market capitalisation has evaporated since the start of 2026.