ZUS Coffee said to be exploring IPO to raise at least RM1 billion

ZUS Coffee, the rapidly expanding Malaysian coffee chain, is reportedly considering an initial public offering (IPO) of its Malaysia business to raise at least RM1 billion, according to sources familiar with the matter. The company, which opened its first outlet in 2019, has already overtaken Starbucks as Malaysia’s largest coffee chain in 2024.

ZUS Coffee is currently working with financial advisers to potentially value the business at around RM4 billion, should the IPO proceed. Discussions regarding the offering are ongoing, and details such as the IPO's timing and size may change, according to the sources. The IPO could potentially take place on Bursa Malaysia as early as mid-2027.

ZUS Coffee has experienced significant growth, with 1,000 outlets worldwide, including locations in Thailand, the Philippines, and Singapore. The IPO could bolster the momentum for IPOs in Malaysia, where US$1.5 billion has been raised in initial public offerings this year, up from US$978 million in the same period last year. Other Malaysia-listed coffee chains include Oriental Kopi Holdings Bhd., valued at RM2.1 billion, and Empire Premium Food Bhd., valued at RM1.1 billion.

Empire Premium, which debuted on the market in April, has increased by 43% since its listing, while Oriental Kopi has more than doubled since its IPO early last year.