KUALA LUMPUR: Oriental Kopi Holdings Bhd has filed a draft prospectus on June 13 for an initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The group operates a cafe chain and sells packaged food, mainly packaged coffee and tea.
According to the draft prospectus, Oriental Kopi’s IPO comprises the public issue of 418.1 million new shares at a price to be determined later.
It stated that 60 million new Oriental Kopi shares would be open for application by the Malaysian public while 20 million shares for eligible directors, employees, and contributors to Oriental Kopi's success.
It said 250 million new shares are reserved for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) and 88.1 million by way of private placement to selected investors.
Oriental Kopi plans to use the proceeds from its IPO to establish a new head office, central kitchen, and warehouse, and to expand its cafes in various states in Malaysia.
It also plans to utilise the funds for expanding its consumer-branded packaged foods segment and marketing efforts in international markets.
Oriental Kopi has around 14 cafes under its brand, with 10 in the Klang Valley and the remainder in Johor.
The group’s net profit more than doubled to RM20.03mil in the financial year ended Sept 30, 2023 (FY23) from RM9.56mil in 2022.
Its revenue surged RM133mil from RM48.6mil a year ago.
Oriental Kopi intends to recommend and distribute a dividend of 30.00% of the profit attributable to the owners of the company after the listing.
“Our company did not declare any dividend for the FY21. Our company had declared and paid dividend amounting to RM2.54mil and RM11.02mil in respect of the FY22 and FY23 respectively,” it said.
As at May 2, Oriental Kopi intends to declare a dividend of up to 50% of the profit attributable to the owners of the company in respect of the FY24 prior to the listing.
Alliance Islamic Bank Bhd is the IPO’s principal adviser, sponsor, sole underwriter and placement agent.
