[JAKARTA] Indonesia’s homegrown coffee chain Fore brewed up a bold debut on the local bourse on Monday (Apr 14), becoming the first player in the nation’s fast-growing coffee industry to go public – marking a milestone in South-east Asia’s largest economy.
Shares of Fore opened at 252 rupiah, surging 34.04 per cent above its initial public offering (IPO) price of 188 rupiah per share. Fore’s strong debut led the Indonesia Stock Exchange to suspend trading, as the stock exceeded the auto-reject threshold.
Fore, backed by venture capital firm East Ventures, became the 12th company to list on the Indonesia Stock Exchange this year – adding momentum to a revived IPO market that has raised over six trillion rupiah (S$471 million) so far.
The listing takes place against a backdrop of heightened uncertainty in global equity markets, driven by escalating tariff tensions between the US and China. Indonesia has also been caught in the crossfire, targeted by US tariff hikes –though it is currently under a temporary reprieve.
The Jakarta Composite Index has tumbled more than 10 per cent since the start of the year, weighed down by Indonesia’s economic slowdown and persistent trade tensions.
Willson Cuaca, president commissioner of Fore and co-founder and managing partner of East Ventures, said the decision to go public despite volatile market conditions was driven by confidence in Fore’s strong business fundamentals and the robust potential of Indonesia’s domestic coffee market.
A NEWSLETTER FOR YOU
Friday, 8.30 am
Asean Business
Business insights centering on South-east Asia’s fast-growing economies.
“We are not affected by the ongoing trade tensions, as our business is locally focused,” he said on Monday.
The IPO raised 353.4 billion rupiah after the offering was oversubscribed by 200 times, signalling robust demand even amid global market uncertainty.
The company plans to channel 76 per cent of the fresh capital into aggressively expanding its retail footprint, aiming to scale up to 600 locations across Indonesia within the next four years.
Founded in 2018, Fore Coffee has rapidly expanded its footprint, now operating 217 outlets across 43 cities in Indonesia and Singapore. It recently became the second Indonesian coffee brand to enter the Singapore market.
As of September 2024, the company reported net sales of 727 billion rupiah, a 135 per cent increase compared to the previous year. At the same time, Ebitda (earnings before interest, taxes, depreciation and amortisation) soared by 187 per cent, reaching 135 billion rupiah.
The company’s performance reflects broader tailwinds in Indonesia’s coffee industry. A report by Redseer Analysis projects the sector to grow at a compound annual growth rate of 11 per cent through 2030, with the market poised to reach a value of US$12.6 billion, driven by rising urban consumption and a deepening appreciation for locally crafted brews.
