Fore Coffee shares jump 34% on IPO debut

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Shares of Indonesian coffee chain Fore Coffee rose to 252 rupiah (US$0.015) on its first day of trading on the Indonesia Stock Exchange (IDX).

The figure marks a 34% jump from its IPO price of 188 rupiah (US$0.011), nearing the IDX’s 35% daily price increase limit.

Much is riding on Fore’s IPO performance. Indonesia’s currency and stock market have been battered recently, while its tech sector is shaking off scandals and underperformance.

Willson Cuaca of East Ventures, Fore’s primary backer, has publicly positioned the IPO as a move to help reverse the country’s slump.

“We need a lot of positive news that Indonesian entrepreneurs are resilient,” Cuaca said at the IPO ceremony. “I hope Fore’s IPO can be an example of a startup that is run with good governance and by investors that don’t just think about their exit strategy.”

Underscoring that point, Fore’s investors – including East Ventures – have voluntarily agreed to a 12-month post-IPO lock-up period, which is longer than the eight months mandated by the IDX.

So far, the coffee firm is off to a good start. Though the IPO’s US$24 million target is relatively modest by tech standards, the listing was still oversubscribed by over 200x.

See also: All eyes on Fore as IPO gives 1st sip of cafe startup listings

Fore’s IPO also serves as a test for Indonesia’s other consumer companies. In the past few years, VCs have increasingly backed such brands – whether coffee or others – while firms in ecommerce or fintech struggle to scale profitably.

Among those watching is fellow VC-backed coffee chain Kopi Kenangan, which has just opened its first store in India.

Currency converted from Indonesian rupiah to US dollar. US$1 = 16,762.6 rupiah.