ORIENTAL Kopi Holdings Bhd, a café chain operation seeking listing on the ACE Market of Bursa Malaysia, has received a thumbs up from a local research house with a fair value of 68 sen.

“This is to reflect its strong earnings growth trajectory driven by new outlet expansions and rising contribution from FMCG sales,” according to Mercury Securities Sdn Bhd in a note released yesterday.

Its IPO is priced at 44 sen per share, with application closing tomorrow (Jan 9) and listing scheduled for Jan 23.

Oriental Kopi’s IPO will comprise a public issuance of 418.1 million new shares, representing 20.9% of its enlarged issued shares of two billion upon listing. There is no separate tranche for the sale of existing shares.

Out of the 418.1 million shares, 60 million shares are available to the Malaysian public via balloting, 20 million shares to its eligible directors, employees as well as persons who have contributed to the company’s success.

Another 88.1 million shares will be made available to selected investors and the remaining 250 million shares will be made available to Bumiputera investors, as approved by the Ministry of Investment, Trade and Industry — both by way of private placement.

Since opening its first outlet in 2020, it said the café chain operation has expanded by leap and bounds within four years, reaching 19 outlets as of December 2024.

Despite the rapid expansion, it said the the average daily sales per outlet have sustained at a high level, reflecting that both its F&B offerings and packaged foods are very well-received by end-consumers.

“Most outlets experience near-full patronage consistently, and the impressive average daily sales can also be attributed to the substantial contribution from in-store sales of packaged foods (13% of FY24 revenue) as well as deliveries via GrabFood (~10% of F&B sales according to management),” it added.

Established in Dec 2020, Oriental Kopi is primarily involved in the business of café F&B services as well as the sale of its own brand packaged foods. The company currently operates 20 café outlets (19 in Peninsular Malaysia and 1 in Sarawak) and two retail speciality stores in Johor.

Its top three shareholders are its MD Datuk Chan Jian Chern (42.2%) as well as its two executive directors, Chan Yen Min (15.6%) and Koay Song Leng (10.9%). – TMR