KUALA LUMPUR: Oriental Kopi Holdings Bhd debuted on the ACE Market of Bursa Malaysia at 75 sen, marking a 31-sen premium over its initial public offer (IPO) price of 44 sen, with 67.47 million shares traded.
As of 10 am, its share price surged 93.18 per cent or 41 sen, to 85 sen. The stock rose as much as 94.3 per cent in early trade to 85.5 sen.
Managing director Datuk Chan Jian Chern said the team's dedication and hard work the past four years have propelled Oriental Kopi to achieve this milestone.
"With the proceeds from our IPO, we are strategically positioned to accelerate our growth and seize new opportunities in the food and beverage (F&B) industry," he said in a statement.
Its expansion plans include establishing a new head office, central kitchen, and warehouse in Selangor, spanning approximately 108,448 square feet.
"This facility will enable us to centralise our management functions, streamline our F&B operations, and enhance storage and distribution efficiency," said Chan.
To support this initiative, RM53.7 million (29.2 per cent) of the total RM184 million from the IPO proceeds was earmarked for the new operational facility.
This will facilitate the company's expansion of its cafe chain across Malaysia, the growth of its packaged foods segment, and the implementation of strategic marketing initiatives to strengthen its presence in international markets.
He added that RM75.8 million (41.2 per cent) will be used to supplement its working capital requirements and RM36.4 million (19.8 per cent) is for the expansion of its cafe chain across Malaysia.
Additionally, RM5 million (2.7 per cent) is allocated for the growth of the company's packaged foods segment, RM5.5 million (3.0 per cent) is for marketing activities in international markets, and RM7.6 million (4.1 per cent) is for listing expenses.
Oriental Kopi, through its subsidiaries, is primarily engaged in cafe chain operations, alongside the distribution and retail of its brands of packaged foods.
Its first cafe was established in December 2020 and it has expanded its presence nationwide with 19 Oriental Kopi cafes to date.
Through a joint venture arrangement with Paradise Group Holdings Pte Ltd, the company has recently commenced its first overseas cafe in Singapore's Bugis Junction.
In addition to its cafe operations, the group manages a speciality retail store located in St. Giles Southkey Hotel, Johor.
On the financial front, Oriental Kopi's revenue grew from RM5 million in the financial year ending Sep 31, 2021 (FY21) to RM277.3 million in FY24.