KUALA LUMPUR: Popular cafe chain operator, Oriental Kopi Holdings Bhd, has submitted a preliminary prospectus for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The IPO will involve it issuing 418.1 million new ordinary shares.
According to the draft prospectus, 60 million shares are set aside for Malaysian public investors, while another 20 million shares are allocated to eligible directors, employees, and contributors.
88.1 million shares will be offered to selected investors, with 250 million shares designated for private placement to approved Bumiputera investors under Ministry of Investment, Trade and Industry's (MITI) oversight.
Oriental Kopi said the funds raised from the public issue will be allocated towards establishing a new head office, central kitchen, and warehouse.
Additionally, the company intends to use the proceeds to set up four specialty retail stores in the central region of Peninsular Malaysia and Johor, within 24 months from the listing date between 2025 and 2026.
"The operation of the specialty stores is expected to increase our overall brand awareness to benefit our cafe chain, which can showcase our full range of consumer-branded packaged foods to cater to domestic and foreign tourists," it said.
Oriental Kopi also plans to use the proceeds to enhance consumer branded packaged food segments, conducting marketing activities in international markets, and bolstering its working capital.
"To expand our reach in foreign markets for consumer-branded packaged foods, we will actively participate in food and beverage (F&B) exhibitions and events."These efforts aim to secure new resellers and enhance our brand awareness through various marketing activities," it said.
In February, Oriental Kopi received its initial purchase order for exporting consumer branded packaged foods, including coffees, spreads, pastries, and instant noodles, to an e-commerce company based in Hong Kong.
"On 2 May 2024, we entered into a joint-venture agreement with Paradise Group to expand our Oriental Kopi cafe into Singapore," it said.
The company announced that its inaugural Oriental Kopi cafe in Singapore is scheduled to begin operations in the fourth quarter of 2024 (4Q24).