Oriental Kopi IPO Oversubscribed 60 Times Ahead Of ACE Market Debut

KUALA LUMPUR, Jan 14 (Bernama) -- Food and beverage (F&B) chain operator Oriental Kopi Holdings Bhd’s initial public offering (IPO) has been oversubscribed by approximately 60 times.  

In a statement today, Oriental Kopi said the oversubscription reflects a total subscription value of RM1.6 billion at an IPO price of RM0.44 per share.  

“Upon listing, Oriental Kopi is anticipated to achieve a market capitalisation of RM880 million, based on the aforementioned IPO price and an enlarged share base of 2.0 billion ordinary shares,” the company said. 

The IPO is set to raise RM184 million for the company, which is scheduled to debut on the ACE Market of Bursa Malaysia on Jan 23, 2025.  

“For the 60.0 million issue shares allocated to the Malaysian public, Oriental Kopi received 66,041 applications for 3,657.61 million issue shares, valued at approximately RM1.609 billion.  

“The Bumiputera portion attracted 10,156 applications for 695.88 million Issue Shares, representing an oversubscription rate of 22.20 times, while the public portion saw 55,885 applications for 2,961.73 million issue shares, reflecting an oversubscription rate of 97.72 times,” it said.  

The company added that 20.0 million issue shares allocated to eligible directors, employees, and contributors, as well as 88.1 million shares for selected investors and 250.0 million shares for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, have been fully subscribed. 

Allotment notices will be issued by Jan 21, 2025.  

Oriental Kopi’s managing director Datuk Chan Jian Chern said the funds raised would accelerate the company’s expansion to meet growing demand for its F&B products and services.  

“The majority of the IPO proceeds, with RM75.8 million (41.2 per cent) allocated for working capital, RM53.7 million (29.2 per cent) for establishing a new head office, central kitchen, and warehouse, and RM36.4 million (19.8 per cent) for expanding the café chain across Malaysia.

“Additionally, RM5.0 million (2.7 per cent) is earmarked for the expansion of our packaged foods segment, RM5.5 million (3.0 per cent) for marketing activities in foreign markets, and RM7.6 million (4.1 per cent) to defray our listing expenses,” he added.  

Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter, and placement agent for the IPO exercise.  

-- BERNAMA