Fore Coffee’s initial public offering (IPO) has drawn strong retail investor interest, with the Indonesian coffee chain’s shares oversubscribed by 200 times and attracting 114,873 investors, according to a statement on Friday.
“Fore Coffee’s IPO, which drew significant investor interest, demonstrates how an authentic product from a local startup can resonate strongly—even amid capital market uncertainty,” Willson Cuaca, President Commissioner of Fore Coffee and co-founder and Managing Partner at East Ventures, said in a statement.
“The counterintuitive decision to move forward with the IPO during the lowest Indonesia Stock Exchange (IDX) Composite Index level since the pandemic ultimately paid off.”
Fore Coffee, trading under the issuer code FORE, is scheduled to debut on the IDX on Monday. The company set its IPO price at 188 rupiah per share. With the issuance of 1.88 billion new shares—equivalent to 21.08% of its total issued and fully paid-up capital—the company is poised to raise around 353.44 billion rupiah in fresh funds.
Fore Coffee plans to allocate the proceeds towards three key areas of business growth and development. Approximately 275 billion rupiah will be used to expand its outlet network, with a target of opening 140 new coffee shops across Indonesia over the next two years. This year alone, the company plans to open 72 new outlets. Currently, Fore Coffee operates 245 outlets in 45 cities across Indonesia and Singapore.
“Domestic expansion will remain Fore Coffeeʼs main priority in the coming years, as coffee demand in Indonesia continues to be strong,” Muhammad Fahmi Rachmatullah, a director at Fore Coffee, had said in an earlier media briefing.
In addition, around 60 billion rupiah will be allocated to establishing new donut outlets through its subsidiary, PT Cipta Favorit Indonesia (CFI). Fahmi said that they will enter the doughnut business in the third quarter this year.
The remaining 18 billion rupiah of total fundraising will be used for working capital.
Mandiri Sekuritas and Henan Putihrai Sekuritas acted as joint lead underwriters and intermediaries between investors and the capital market.
Vico Lomar, President Director and CEO of Fore Coffee, had stated that the company is targeting a revenue growth of 40-50% this year. For the first nine months of 2024 (January-September), Fore Coffee recorded sales of 727 billion rupiah, a 135.4% increase from 309 billion rupiah in the same period of 2023.
The company also reported a net profit of 42.38 billion rupiah in the first nine months of 2024, recovering from a loss of 16.5 billion rupiah in the same period of 2023.
