ZUS Coffee’s IPO — The Next Big Thing
A breakdown on ZUS Coffee’s IPO
ZUS Coffee’s Origin
ZUS Coffee’s story started modestly, just like any business out there. A group of entrepreneurs, which included the face of the brand — Ian Chua, established their very first ZUS outlet in November 2019 in Binjai 8 — a small business holding on “one app, one outlet and one big dream”, with the goal of bringing high-quality, specialty coffee to the masses at an affordable price.
Notice the opening date? It was just before the Covid-19 pandemic — an event that dramatically changed the food and beverage (F&B) landscape. Most young F&B startups would have failed the moment regulatory changes (i.e.: government lockdowns) hit. Miraculously, ZUS Coffee did more than just survive — by April 2020, it reached a monumental milestone of 150,000 cups in just 6 months; by August 2020, they became profitable. Yes, you heard that right — a coffee startup turning profitable in just 10 months during the unforeseen pandemic — simply fascinating!
Post-pandemic, the growth did not slow down at all. At present, ZUS coffee operates well over 1,000 outlets (directly owned!), expanding internationally across Asia into countries like Philippines and Thailand, surpassing coffee giants Starbucks and becoming the largest coffee chain operator in Malaysia.
Business Model
What really achieved ZUS Coffee’s definitive success is its tech-driven business model. Their commitment to developing online infrastructure despite slow technological uptake in Malaysia was the reason behind their success during the pandemic. In a period where the pandemic slowed down most businesses, it accelerated ZUS as demand for online ordering and cashless payments became increasingly prominent, making their technological “bet” highly successful.
This digital-first infrastructure intentionally shifted customer ordering habits (encouraging online ordering vs ordering physically), allowing them to keep real estate cost down and achieve comparatively lower overhead costs in an industry where most coffee chains remained focused on in-store experiences, driving rent and labour costs up. Developing their own app also means data advantages when compared to companies relying on food delivery apps like Grab and Foodpanda. Through app usage and feedback tracking, ZUS is able to better understand consumer preferences, from flavour trends to order frequency, adapting offerings and loyalty companies to target specific segments, fuelling both retention and rapid scaling.
Naturally, flavours matter most importantly in an F&B chain. ZUS has also consistently implemented the concept of “glocalization”, creating regional menu items like “Gula Melaka Lattes” for the Malaysian population and “Pandan Cappuccinos” for the Singaporeans. This level of localization and active creation of new, trendy flavours, has allowed ZUS to capture a larger proportion of younger and socially aware customers.
The Numbers
Over the course of operations, ZUS Coffee has been growing exponentially YoY. Between FY2023 and FY2024, the company’s revenue more than doubled from RM204.12 million to RM468.20, while net profit paints a more compelling story, tripling from RM10.15 million to RM37.03 million. With profits growing faster than revenue, it signals genuine operating advantages as the company scales larger, not artificial growth funded at the expense of margins.
The Funding Story to a Potential IPO
Historically, ZUS Coffee has had a total of 2 funding rounds.
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The first round was in March 2023, where the company sold 35% equity interest to Janica Lao, daughter of Filipino billionaire Frank Lao — the start of genuine institutional interest.
The second round was in September 2024, where Malaysian civil service pension fund KWAP, along with PE firm KV Asia Capital and F&B company Kapal Api Group, all participated in this fundraising, raising a total pool of RM250 million. Notably, only RM50 million was new capital that was directed towards strengthening the company’s balance sheet and supporting any operational and expansion needs, while the remaining RM200 million was used to buy out existing shareholders.
Fast forward to today, ZUS Coffee is now considering an IPO listing into Bursa’s Main Market to raise at least RM1 billion, with CIMB and Maybank Investment Banks expected to be the main advisers, potentially valuing the company at RM4 billion.
This potential listing is expected to happen mid-2027, under favourable conditions, where there is a combination of rising deals activity and interests in the local F&B sector, and shifting consumer preferences towards local brands amid the boycott of Israel-associated Western brands.
For reference, prominent coffee chains IPO that happened recently include Oriental Kopi Holdings Bhd and Empire Premium Food Bhd, with market values of RM2.1 billion and RM1.1 billion respectively. Both companies have performed well since its trading debut, with Empire Premium rising 47% (RM0.7 -> RM1.03) and Oriental Kopi increasing by 139% (RM0.44 -> RM1.05) as of August 20, 2026.
What makes ZUS Coffee’s IPO worth monitoring is its scale. With an expected target valuation of RM4 billion, ZUS Coffee would list at about double of Oriental Kopi’s market value and triple of Empire Premium’s, making it the largest homegrown coffee brand to test the market’s interest for this sector. If both those companies are an indicator of the market’s appetite, ZUS Coffee’s listing will be tremendous.
My Own Two Cents
There are several factors that could determine the outcome of ZUS Coffee’s IPO:
1. Source of Growth: Whether ZUS Coffee’s consistent profit surge stems from new store openings or same store growth. This could determine if the profit growths are durable or temporary in nature, gradually slowing down as expansion becomes less aggressive.
2. Environmental Risk: With international expansions, ZUS Coffee must accommodate distinct competitive and regulatory environments, which is a remarkably different challenge from opening another branch in another location in Malaysia. How ZUS Coffee tackles these unique landscapes could significantly affect their share performance.
3. Historical IPOs: Before mid-2027, it is definitely possible for other F&B companies to IPO before ZUS Coffee. In the event that their IPO does not go smoothly, it could invoke investor scepticism, discouraging them to invest in ZUS Coffee when it lists.
4. BAU Performance: Announcing a potential IPO causes heightened public and regulatory scrutiny. Any disputes (e.g.: food safety incident at new outlets) could adversely affect its IPO listing.
Overall, ZUS Coffee remains one of the most anticipated IPOs, with proven scalability, profitability, and even international expansion. The hardest test is yet to come as it prepares to make its financials and future strategies fully public.
