From left: Oriental Kopi executive director Sean Koay Song Leng, executive director Callie Chan Yen Min, managing director Datuk Chan Jian Chern, Alliance Islamic Bank CEO Rizal IL-Ehzan Fadil Azim, group chief corporate and institutional banking officer Teoh Chu Lin and Islamic capital markets head and senior vice-president of corporate finance Tee Kok Wah
KUALA LUMPUR: Oriental Kopi Holdings Bhd, which launched its prospectus for an initial public offering (IPO) on the ACE Market of Bursa Malaysia yesterday, is confident that its food and beverage (F&B) offerings such as signature egg tarts, nasi lemak and coffee at its cafe chain will be a differentiator in a cut-throat F&B landscape.
The company’s executive director Callie Chan Yen Min said at a briefing following the launch of the prospectus that the company had built a strong brand identity through its signature offerings.
While targeting mass-market consumers, the company in particular believes that the Muslim market remains largely untapped, with Callie noting that halal certification would help it gain acceptance among Muslim consumers.
Currently 13 of the 19 cafes owned by the company in Malaysia have been certified halal, with the rest in the process of being certified.
All its packaged-food products have been halal-certified and mostly sold in-store or through distribution channels such as supermarkets and eCommerce platforms.
Currently, the company exports its packaged-food products to Hong Kong and Canada.
The company also has one speciality store selling its packaged-food products and plans to open four more.
Managing director Datuk Calvin Chan Jian Chern said the company has plans to make further inroads into the Muslim market given the cafe-chain operator’s strategy of offering Malaysia’s multiethnic cuisine across the country and in the surrounding region.
“We’re targeting neighbouring countries as it is also easier to supply them,” he said.
Oriental Kopi has a 30% stake in a joint venture (JV) in Singapore, where its JV partner, Paradise Group Holdings Ltd, operates one cafe and has plans to open two more this year.
The company plans to raise RM183.96mil from a public issuance of 418.1 million new ordinary shares at 44 sen per share to give it a market capitalisation of RM880mil.
The new ordinary shares represent 20.9% of its enlarged number of issued shares totalling two billion ordinary shares.
Oriental Kopi, whose listing has been scheduled for Jan 23, posted revenue of RM277.3mil for its financial year ended Sept 30, 2024 (FY24), which was a 106.9% jump from FY23.
Cafe operations contributed 94.1% of revenue with the rest from the distribution and retail of packaged-food products.
The company plans to use the IPO proceeds for a head office, central kitchen and warehouse as well as to open new cafes and expand the packaged-foods arm of the business.
A portion would also be used for marketing activities overseas and for working capital.
