Indonesia’s Fore Coffee brews expansion plans with 379.8 billion rupiah IPO amid market jitters

[JAKARTA] Fore Kopi Indonesia (Fore Coffee) seems to be unfazed by recent market volatility. Instead, it is riding Indonesia’s caffeine boom, and brewing up expansion plans with new stores and restaurant ventures, fuelled by its upcoming initial public offering (IPO).

The East Ventures-backed startup, one of the country’s largest coffee chains, aims to raise 379.8 billion rupiah (S$30.7 million) in its stock-market debut on Apr 11. It is offering around 1.88 billion shares, equivalent to 21.08 per cent of its total stake, at a price range of 160 to 202 rupiah per share.

Undeterred by Indonesia’s market slump, Fore Coffee chief executive officer Vico Lomar remains confident about the company’s stock-market debut, banking on the nation’s seemingly insatiable thirst for coffee to drive its growth in South-east Asia’s largest economy.

“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 Friday (Mar 21).

The company plans to channel 76 per cent of its IPO proceeds into expanding its outlet network across Indonesia, with the goal of operating in up to 600 locations within the next four years.

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

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

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

It faces strong competition from industry leaders such as Kopi Kenangan – South-east Asia’s first food and beverage unicorn – and home-grown 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 venture capital firm has no plans to exit following Fore’s IPO, as the funds raised will be used to fuel the company’s expansion. 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 IPO.

Indonesia’s IPO market is perking up in 2025 after a sluggish 2024, a year overshadowed by political transition. So far this year, eight companies have collectively raised US$231 million – already more than a quarter of last year’s total.

Taste of things to come

Founded in 2018, Fore Coffee now has 217 outlets across 43 cities in Indonesia and Singapore. It is the second Indonesian coffee chain to make its debut in the city-state, following Kopi Kenangan opening outlets in Raffles City and Changi Airport.

With a menu built around sweet lattes and a focus on busy office workers, Fore is working its way up to become one of South-east Asia’s largest coffee networks.

While Singapore does offer a gateway for regional expansion, the company has no immediate plans to add more outlets overseas, emphasised Vico. It is choosing instead to concentrate on strengthening its foothold in the domestic market.

He noted that high rental costs and capital expenditures pose challenges in the city-state, where opening a single outlet can cost up to one-and-a-half to two times more than in Indonesia.

“For now, our presence in Singapore is more about branding and showcasing as we learn the ropes of regional expansion. However, despite our limited footprint, revenue from our Singapore outlet continues to grow,” he added.

Home to around 280 million people, Indonesia boasts a rapidly growing middle class with a taste for everything from artisanal coffee to cutting-edge smartphones.

The country’s coffee culture is expanding at an impressive pace, with annual consumption expected to climb 11 per cent through to 2030, according to Redseer Strategy Consultants. This makes Indonesia one of the fastest-growing coffee markets in the world.

Fore Coffee recorded piping-hot growth last year, with net sales skyrocketing to 727 billion rupiah as at September 2024 – a 135 per cent surge from the previous year.

The company’s profitability also saw a strong boost, with gross profit climbing 128 per cent year on year to 447 billion rupiah. Meanwhile, earnings before interest, taxes, depreciation and amortisation shot up by 187 per cent on year, reaching 135 billion rupiah.

This year, the company plans to add 72 new outlets across Indonesia as part of its domestic growth strategy.