Finance Malaysia Blogspot: (IPO Listing) Oriental Kopi ~ Are you queuing for this?

06 January 2025

(IPO Listing) Oriental Kopi ~ Are you queuing for this?

As we step into 2025, Malaysia's IPO landscape is buzzing with anticipation. Building on the momentum from 2024, which saw 55 IPOs raising RM7.42 billion — a 107% increase from the previous year — Bursa Malaysia is poised to continue this robust trajectory.

One of the most eagerly awaited listings is that of Oriental Kopi Holdings Bhd. The Kopitiam-style chain operator has set its IPO price at 44 sen per share, aiming to raise approximately RM183.96 million ahead of its ACE Market debut.

With this pricing, Oriental Kopi's market capitalisation is projected to be around RM880 million upon listing, reflecting a price-to-earnings ratio of about 20 times based on its financial year ended September 30, 2024.

Nine (9) Key Takeaways from IPO Prospectus:

The following events are intended to take place on the following tentative dates:
Principal details of the IPO derived from Prospectus:
Business Model: The company is primarily involved in cafe chain operations as well as the distribution and retail of our brands packaged foods. The cafe chain operates under the Oriental Kopi brand providing F&B services and in-store sales of our brands of packaged foods.
Business strategies and plans:
Upon completion of the Share Transfer, the shareholding structure will be as below:
Based on the IPO Price of RM0.44, the total gross proceeds of will be utilised in the following manner:
Financial Highlights: Revenue is growing at a speed of 55x in just 4 years! 🚀🚀🚀
Key financial ratios: Quiet healthy gross profit margin oh! 💖
Dividend Policy: It is the intention of our Board to recommend and distribute a dividend of 30% of the profit attributable to the owners of our Company after the Listing. Note: Intention only ya! 👀

Dividend history:
~ FYE 2021: -
~ FYE 2022: RM2.54 million
~ FYE 2023: RM11.02 million
~ FYE 2024: RM21.00 million