Fore Coffee brews $24m IPO despite market jitters

Fore Kopi Indonesia (Fore Coffee) appears unfazed by recent market volatility.

Instead, it’s tapping into the caffeine boom in Southeast Asia’s largest economy, brewing expansion plans with new stores and restaurant ventures fueled by the upcoming IPO.

The East Ventures-backed startup aims to raise 379.8 billion rupiah (US$24 million) in its stock market debut on April 14 (changed from the initial date of April 11).

Photo credit: Fore Coffee

It’s offering around 1.88 billion shares – representing 21.08% of its total stake – at a price range of 160 to 202 rupiah (roughly 0.38 to 1.28 US cents) per share.

Undeterred by Indonesia’s market slump, Fore Coffee CEO Vico Lomar remains confident about the public listing, banking on the country’s seemingly insatiable thirst for coffee to drive the company’s growth.

“We see huge potential in Indonesia’s premium-coffee market, and this IPO will provide the resources we need to seize that opportunity,” he said at a press conference on March 21.

Fore plans to allocate 76% of its IPO proceeds to expanding its outlet network across Indonesia, aiming for up to 600 locations within four years.

Another 18% will go towards a capital deposit for launching a doughnut outlet through a subsidiary, while the remaining 6% will support working capital needs.

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Its book-building period runs from March 19 to 21, followed by the public offering from March 26 to April 9, with Henan Putihrai Sekuritas and Mandiri Sekuritas as the underwriters.

Fore Coffee will be the first coffee chain to go public since outlets specializing in the beverage began to sprout up across Indonesia in the past few years.

The company faces strong competition from industry leaders such as Kopi Kenangan – Southeast Asia’s first food and beverage unicorn – and homegrown Toko Kopi Tuku, both of which have established a solid presence in the ready-to-drink coffee market.

Willson Cuaca, co-founder and managing partner of East Ventures, said the VC firm has no plans to exit following Fore’s IPO. He also confirmed that East Ventures will be subject to a lock-up period, preventing it from selling its shares for 12 months after the listing.

Taste of things to come