Cafe Chain Seeks to Strengthen Its Market Presence and Operational Efficiency

Malaysian cafe chain operator Oriental Kopi Holdings Bhd is set to raise RM184 million (SGD 54.7 million) through its upcoming listing on Bursa Malaysia’s ACE Market. The funds will support the company’s ambitious expansion plans, including new outlets, a central kitchen facility, and regional growth.

Oriental Kopi, a food and beverage powerhouse, announced its initial public offering (IPO) priced at 44 sen per share, targeting RM184 million to bolster its operational infrastructure and market presence. Scheduled for listing on January 23, 2025, the company’s IPO underscores its vision to enhance customer experience and operational efficiency.

Oriental Kopi’s IPO involves issuing 418.1 million shares, representing 20.9% of the company’s enlarged share capital. The raised funds will be allocated as follows: RM75.78 million (SGD 22.5 million) for working capital, RM53.69 million (SGD 15.9 million) for constructing a central kitchen and warehouse in Puchong, Selangor, and RM36.4 million (SGD 10.8 million) for expanding its cafe network.

The new 108,448-square-foot facility will centralize management operations and food production, optimizing storage and distribution processes. The central kitchen aims to alleviate workloads at outlets with limited kitchen spaces while ensuring consistent food quality.

The company plans to open 13 new cafes across Malaysia in 2025 and add two more outlets in Singapore. This expansion reflects Oriental Kopi’s commitment to strengthening its foothold in existing markets while exploring opportunities in neighboring countries.

Oriental Kopi recorded a meteoric rise in revenue, from RM5 million (SGD 1.5 million) in FY21 to RM277.3 million (SGD 82.5 million) in FY24, with a compound annual growth rate of 280.9%. Its net profit surged from a loss of RM500,000 (SGD 148,000) to RM43.1 million (SGD 12.8 million) over the same period.

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In FY24, 94.1% of revenue was derived from cafe chain operations, while the remaining 5.9% came from the sale of packaged foods and other segments. The company also allocated RM5 million (SGD 1.5 million) to expand its packaged food business and RM5.5 million (SGD 1.6 million) for international marketing.

Oriental Kopi’s growth signals an elevated cafe experience with enhanced services. As the company expands across Southeast Asia, customers can expect improved quality and accessibility at its outlets.

Oriental Kopi Holdings Bhd is set to raise RM184 million via an IPO, slated for listing on Bursa Malaysia’s ACE Market. The funds will support the company’s expansion across Malaysia and Singapore, construction of a central kitchen, and development of its packaged food segment.

Source: Malay Mail (2025)

Keywords: Oriental Kopi IPO, RM184 Million Investment, Malaysia Singapore Expansion