Oriental Kopi Holdings Bhd is off to a great start on its ACE Market debut on the Bursa Malaysia after its shares surged 81.82% from its IPO price of 44 sen.
The strong market debut comes on the heels of an IPO oversubscription of approximately 60 times, underscoring the high level of confidence in Oriental Kopi’s business operations and growth prospects.
As of 9:03am, its shares are trading at 80 sen for a premium of 36 sen with more than 148 million shares traded.
Oriental Kopi’s IPO comprises a public issue of 418.1 million new ordinary shares at an issue price of 44 sen per share, representing 20.9% of the enlarged share capital.
Oriental Kopi’s Managing Director Datuk Chan Jian Chern said with the proceeds of RM184 million raised from the IPO exercise, the company is strategically positioned to accelerate its growth and seize new opportunities in the food and beverage (F&B) industry.
“Our IPO plans include establishing a new head office, central kitchen, and warehouse (new operational facility) in Selangor, spanning approximately 108,448 sq ft. This facility will enable us to centralise our management functions, streamline our F&B operations and enhance storage and distribution efficiency.
“To support this initiative, we have allocated RM53.7 million (29.2%) from the IPO proceeds for the new operational facility, facilitating the continuous expansion of our cafe chain across Malaysia, the growth of our packaged foods segment, and the implementation of strategic marketing initiatives to strengthen our presence in international markets,” Chan said.
He added that the company has earmarked RM75.8 million (41.2%) to supplement its working capital requirements, RM36.4 million (19.8%) for the expansion of its cafe chain across Malaysia, RM5 million (2.7%) for the growth of its packaged foods segment, RM5.5 million (3%) for marketing activities in international markets and RM7.6 million (4.1%) to cover its listing expenses.
Looking ahead, Chan said Oriental Kopi is well-positioned to capture the growth potential presented by economic expansion, rising household spending and increasing tourism.
Alliance Islamic Bank Bhd is the principal advisor, sponsor, sole underwriter and placement agent for the IPO exercise.
