Indonesia's Fore Coffee makes splashy market entrance, IPO oversubscribed 200x

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Fore Coffee, Indonesia's premium yet affordable coffee brand, made a triumphant entrance to the Indonesia Stock Exchange (IDX) today (14 April), marking a pivotal chapter in its growth as a public company.

Shares of Fore Kopi Indonesia opened with a dramatic rise, triggering the Upper Auto Reject (ARA) mechanism shortly after trading began, the company said. The stock surged 34.04% to reach IDR 252 per share, up from the IPO price of IDR 188.

According to the e-IPO system, the offering was oversubscribed by 200.63 times, attracting more than 114,873 investors during the central allotment. The listing makes Fore Coffee the 12th company to go public on the IDX in 2025.

Don't miss: Fore Coffee gets IPO nod amid Indonesian market slide

"We are very excited to embark on this new chapter alongside our investors. The strategy we are implementing is a long-term investment aimed at strengthening our business foundation, expanding our market reach, and reaffirming Fore Coffee's commitment to continuous innovation in delivering high-quality, affordable premium coffee," said Vico Lomar, CEO of Fore Coffee.

The IPO raised IDR 353.44 billion (US$21 million) through the issuance of 1.88 billion new shares, representing 21.08% of the company's enlarged capital. The offering was jointly underwritten by Mandiri Sekuritas and Henan Putihrai Sekuritas.

The decision to list, made in the midst of global market headwinds, signals Fore Coffee's confidence in its fundamentals.

"It may seem counterintuitive, but it was made with strong conviction. This IPO will serve as proof that Indonesia has startups that are well-managed, profitable, and governed with integrity—where investors are not solely focused on valuation or exit strategies, but on sustainable growth," said Willson Cuaca, president commissioner of Fore Coffee and co-founder and managing partner of East Ventures.

Fore Coffee continues to enjoy backing from East Ventures, a regional VC whose support brings strategic capital and access to an expansive ecosystem of businesses and expertise.

The coffee firm's latest financial performance underscores its readiness to enter the public markets. As of September 2024, the company recorded net sales of IDR 727 billion (US$43 million), representing a year-on-year increase of 135%. Gross profit rose by 128% to reach IDR 447 billion (US$27 million), while EBITDA surged by 187% to IDR 135 billion (US$8 million).

According to analysis by Redseer, Indonesia's coffee market is expected to grow at a compound annual growth rate (CAGR) of 11% through to 2030, reaching a potential value of US$12.6 billion. With its focus on affordability, product quality, and market accessibility, Fore Coffee is well-positioned to capitalise on this anticipated growth.

The company plans to use the capital raised from its IPO to support several strategic initiatives. Around IDR 275 billion (US$16 million) will be allocated towards expanding its retail footprint, with a target of opening 140 new outlets across Indonesia over the next two years. A further IDR 60 billion (US$3.6 million) is set aside for vertical expansion through the launch of a donut business via a dedicated subsidiary. Additionally, IDR 18.44 billion (US$1.1 million) will go towards strengthening the company's operational working capital.

Founded in 2018, Fore Coffee blends a tech-driven, online-to-offline model with a mission to bring premium local coffee to the masses. As of September 2024, the company operates 216 outlets across 43 cities in Indonesia, including smaller urban centres, and has made its first international move with a location in Singapore.

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