KUALA LUMPUR: Oriental Kopi Holdings Bhd has priced its initial public offering (IPO) at 44 sen per share for its upcoming listing on the ACE Market.
The company aims to raise RM184 million through the IPO, which will be used to support its expansion plans both in Malaysia and internationally
Since its incorporation in December 2020, Oriental Kopi has established a network of 19 owned and operated cafes in Malaysia and 1 jointly owned and operated cafe in Singapore.
At an IPO price of RM0.44 per share, Oriental Kopi's market capitalisation upon listing will be about RM880.0 million.
According to its prospectus launched today, the group plans to allocate 29.2 per cent or RM53.69 million of the funds raised from the IPO for the establishment of a new operational facility in Puchong, Selangor, including a head office, central kitchen, and warehouse.
This facility, spanning about 108,448 square feet, aims to centralise management functions, optimise food and beverage operations, and enhance storage and distribution capabilities.
Additionally, Oriental Kopi plans to expand its cafe chain within Malaysia using 19.80 per cent or RM36.40 million of its fund and another 2.70 per cent or RM5.00 million to grow its packaged foods segment.
Meanwhile, 41.2 per cent or RM75.78 million of the proceeds will be for working capital, 3.0 per cent or RM5.50 million is dedicated for marketing activities in foreign countries and lastly 4.1 per cent or RM7.60 million for listing expenses.
"Since opening our first cafe during the pandemic, we have built a reputation for delivering quality products and services." "The funds raised will act as a catalyst to strengthen our market presence and drive future growth,"Oriental Kopi managing director Datuk Chan Jian Chern said.
He also told the media that the group is planning to open more outlets in nearby countries.
The IPO involves the issuance of 418.1 million new ordinary shares, representing 20.9 per cent of the Company's enlarged issued share capital of 2.0 billion shares.
Of these, 60.0 million shares will be allocated to the Malaysian public via balloting, 20.0 million to eligible directors, employees, and contributors, 88.1 million through private placement to selected investors, and 250.0 million to Bumiputera investors approved by the Ministry of Investment, Trade, and Industry.
Applications for the public issue opens today and will close on Jan 10, 2025 at 5:00 pm while the company is scheduled to be listed on the ACE Market of Bursa Malaysia on Jan 23, 2025.
Alliance Islamic Bank Bhd serves as the principal adviser, sponsor, sole underwriter, and placement agent for the IPO exercise.