Indonesia’s Kenangan Coffee considering IPO on SGX within next 24 months, CEO says
It would first like greater clarity on how companies could pursue dual listings in Singapore and on regional exchanges.
Indonesian coffee chain Kenangan Coffee is contemplating an initial public offering (IPO) on the Singapore Exchange (SGX) within the next 24 months, according to its co-founder and group chief executive, Edward Tirtanata. Speaking at the Forbes Global CEO Conference, Tirtanata expressed that the company has been closely communicating with SGX, praising the exchange for its efforts to modernize.
While the United States, Hong Kong, and Indonesia are also under consideration, Tirtanata emphasized that the choice of venue would hinge on market conditions being favorable to an ASEAN consumer company at that time.
Tirtanata noted that SGX could potentially serve as a "nucleus" for dual listings on other regional exchanges such as IDX, Bursa Malaysia, and Hong Kong Exchanges and Clearing. However, he expressed a need for clearer guidelines on how companies can pursue dual listings in Singapore and on other regional exchanges. He cited the Nasdaq-SGX Global Listing Board (GLB) as an example of a framework offering companies clear guidelines on share transferability between exchanges, though the valuation threshold of $2 billion for GLB listings poses a challenge for many smaller companies.
The CEO mentioned that Kenangan Coffee's expansion plans are largely funded internally, with new stores funded by cash flow rather than external financing. Listing on a stock exchange would primarily serve to provide liquid markets for venture-capital shareholders to realize their investments, rather than directly funding the company's expansion.
Tirtanata stated that he has no intention of exiting the business and plans to remain with Kenangan Coffee for at least another decade. While Kenangan Coffee operates 10 outlets in Singapore, its highest sales are among its seven markets, the company's elevated rents and capital expenditures make rapid expansion more challenging there compared to Indonesia and Malaysia, where it plans to open about 85 stores in Malaysia and nearly 390 in Indonesia in 2026.
Despite Singapore's competitive F&B market, dominated by international players like Luckin Coffee, Tirtanata remains confident about the potential benefits of listing on SGX. He emphasized that Singapore offers a high volume of daily transactions and average spending per customer, which he views as a significant advantage. The Singapore market's strategic value extends beyond immediate profits, as it can provide a halo effect for Kenangan Coffee's expansion into the Philippines, Malaysia, and other regions.
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