Fore's IPO Oversubscribed, Soars 34% on Debut

Fore Coffee’s IPO saw strong investor demand, with shares surging 34.04% and raising Rp353.44 billion.
Funds will support outlet expansion and a new donut business, though high liabilities raise concerns over financial sustainability.

By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto

April 11, 2025 at 16:30 GMT+7

Fore Coffee has made its trading debut on the Indonesia Stock Exchange with an extraordinary market performance. The subscription number was 200 times higher and the offering is backed by approximately 114,000 contributors from all over the country.

On the launch day of the stock, from Rp188, Fore Coffee shot its shares up by an incredible 34.04% to as high as Rp252, which was also the upper limit of auto-rejection and it took only minutes. The sale of the securities yielded around Rp353.44 billion.

Even though the total sum raised was a little less than the initial target of Rp500 billion, the excess subscription and upsurge in price are a positive reflection of investors' confidence in the company’s future profitability. This enthusiastic response of the market reflects the current inclination towards a new breed of consumer oriented businesses in Indonesia’s stock market.

FORE’s beverage product | Source: Fore Coffee

After successfully securing the necessary funding from its IPO, Fore Coffee has established a strategic plan for the allocation to support its long-term expansion and business development. The plans will be to open 140 new outlets across Indonesia over the next 2 years.

Apart from its augmentation, Fore Coffee has decided to start a donut business employing a total of approximately Rp60 billion and it will operate as a stand-alone entity. The rest of the money will be earmarked to achieve some of the company's ends such as working capital for supporting operational activities, boosting supply chain capabilities, and maintaining business continuity.

These steps underscore the company's dedication to sustainable growth, operational efficiency, and innovation in the continuously growing food and beverage sector of Indonesia.

FORE’s executive during its initial public offering (IPO) at the IDX building | Source: Fore Coffee

In September 2024, Fore Coffee released a financial statement that showed a remarkable financial performance with recorded sales of approximately Rp727 billion or a 135% increase year-over-year. However, the report has also shown that the company's total liabilities reached Rp381 billion, which has triggered some concerns about the debt management and solvency of the company.

Even with this financial issue, Fore Coffee is still able to continue with the growth of the Indonesian coffee market, which is predicted to grow from being a size of US$12.6 billion in 2030. The company’s future success will depend on its ability to balance growth with prudent financial discipline, maintain profitability, and scale operations efficiently.

With a strong brand presence and a growing customer base, Fore Coffee holds significant potential for long-term value creation within the competitive landscape of Indonesia’s food and beverage industry.

Sources:

CNBC

CNN

Jakarta Globe