Fore Coffee, a leading premium coffee retail chain in Indonesia, has announced its intentions to launch an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX).
Trading under the ticker symbol “FORE”, this strategic move is designed to bolster the company’s ambitious expansion plans.
Fore Coffee will offer 1.8 billion ordinary shares to the public, representing 21.08 per cent of its total issued and fully paid-up capital. The indicative offering price has been set between IDR 160 and IDR 202 per share, potentially raising up to approximately US$23.2 million (IDR 379.8 billion).
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The company intends to allocate 76 per cent of the net IPO proceeds to expand its outlet network across Indonesia. It targets establishing around 140 new coffee outlets over the next two years.
A further 18 per cent of the raised capital will be used to open new doughnut outlets via its subsidiary, while the remaining 6 per cent will be used for working capital purposes.
The book-building period commenced on March 19 and will conclude on March 21, 2025. The indicative public offering period is slated for March 26 to April 9, 2025.
“We see a huge opportunity in the Indonesian premium coffee market, and this IPO will give us the resources we need to capitalise on that opportunity,” stated Vico Lomar, CEO of Fore Coffee.
“Fore Coffee’s IPO is a historic moment that reflects the solidity of their sustainable business model. We believe this IPO will accelerate Fore Coffee’s expansion process, open up opportunities to reach more coffee lovers across Indonesia, and strengthen their position as an innovation leader in the coffee industry,” commented Willson Cuaca, President Commissioner of Fore Coffee and co-founder and Managing Partner at East Ventures.
Established in 2018 with an online-to-offline business model and the tagline “Grind the Essentials,” Fore Coffee has grown to become a leading company. As of September 2024, the company boasted 217 outlets across 43 cities in Indonesia and Singapore, including 61 new openings in 2024 alone.
The company claims to have demonstrated significant financial growth, with net sales surging by IDR 418 billion (135 per cent year-on-year) to IDR 727 billion as of September 2024, up from IDR 309 billion in September 2023. Gross profit also witnessed substantial growth, increasing by IDR 252 billion (128 per cent year-on-year) to IDR 447 billion in the same period. Furthermore, Fore Coffee’s EBITDA growth rose by an impressive 187 per cent year-on-year to IDR 135 billion in September 2024.
Also Read: Fore Coffee sharpens business strategy to achieve profitability
According to a Redseer Analysis report from December 2024, the Indonesian coffee market is projected to expand at a compound annual growth rate (CAGR) of 11 per cent over the next five years, reaching a potential market size of US$12.6 billion (IDR 206 trillion based on an exchange rate of IDR 16,350 to USD). Fore Coffee caters to diverse customer needs through its three outlet formats: flagship, medium, and satellite.
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