Fore Coffee’s IPO Oversubscribed by 200 times
Indonesian coffee chain Fore said last week that its IPO was more than 200 times oversubscribed, driven mostly by the coffee boom in the Southeast Asian country. The 7-year-old company expected to raise over USD 21 million in fresh funds by over 110,000 retail investors.
Shares for the coffee chain jumped by 34% to close on the Indonesian Stock Exchange. 18% of the IPO proceeds will be allocated to Fore’s subsidiary Cipta, which will open 30 new outlets in high-traffic areas. The rest of the funds will be invested in raw material procurement, as well as operational costs.
The coffee market in Indonesia is projected to reach a value of USD 12.6 billion in the next five years, according to research firm Red Seer.
