If the snaking lines outside of various Oriental Kopi outlets are of any indication, the F&B chain has been consistently in high demand.
And that should be good news for investors, as Oriental Kopi’s listing on Bursa’s ACE Market has been scheduled for January 23.
It has set its initial public offering (IPO) price at 44 sen per share, and aims to raise RM183.96 million through the IPO.
According to The Edge, the company intends to use its IPO proceeds as follows:
- RM75.78 million will be used for working capital
- RM53.68 million will go to setting up a new head office, central kitchen, and warehouse
- RM36.4 million will be for the expansion of cafes within Malaysia
- The rest has been allocated for marketing activities in foreign countries, expansion of its brands of packaged food, and to defray listing expenses
Under the IPO, the company has set aside 60 million new shares for the public and 20 million shares for eligible persons, The Edge reported.
Oriental Kopi will also sell 88.1 million new shares to select investors and 250 million shares to Bumiputera investors, both through private placement.
Rapid growth that hasn’t gone unnoticed
Founded by Datuk Calvin Chan, his brother-in-law, Sean Koay Song Leng, and sister, Callie Chan Yen Min, the company has grown to 19 cafes across Malaysia and one in Singapore in four years.
It’s famous for its signature egg tarts (which are recognised by The Malaysia Book of Records for having the thickest crust), coffee, nasi lemak, and polo buns, to name a few menu items.
At the time of writing, 13 of the 19 cafes owned by the company in Malaysia have been certified halal, with the rest in the process of being certified.
According to The Star, all its packaged food products have been halal-certified, and are mostly sold in-store or through distribution channels such as supermarkets and ecommerce platforms.
The Edge reports that Oriental Kopi more than doubled its net profit to RM43.13 million in the financial year ended September 30, 2024.
Beyond these accolades and efforts, still not much can be publicly found about the company’s founding story.
We hope that someday, there’ll be more opportunities for aspiring entrepreneurs to learn from Oriental Kopi’s founders’ business playbook.
Featured Image Credit: Bernama / The Exchange TRX
