Malaysia’s tech-enabled coffee chain ZUS Coffee is considering an initial public offering (IPO) of its Malaysia business to raise at least RM1 billion ($245 million), Bloomberg reported on Thursday, quoting people with knowledge of the matter.

According to the report, owner Zuspresso Sdn Bhd is working with financial advisers on the potential IPO that could value the business at about RM4 billion, the people added. An offering might take place on Bursa Malaysia as soon as mid-2027, they said.

Discussions are ongoing and details such as timing and size of the IPO may change, the people said. Zuspresso didn’t respond to requests for comment, according to the report.

ZUS opened its first outlet in 2019 and overtook Starbucks Corp as Malaysia’s biggest coffee chain in 2024.

It has continued to expand, reaching 1,000 outlets in October. ZUS also opens branches overseas in places such as Thailand, the Philippines and Singapore.

Other Malaysia-listed coffee chains include Oriental Kopi Holdings Bhd and Empire Premium Food Bhd.

In September 2024, ZUS Coffee announced that it has secured investment from an investor consortium comprising private equity firm KV Asia Capital, pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP), and Indonesian-based fast-moving consumer goods (FMCG) player Kapal Api Group.

The group has also ventured into the FMCG space with the launch of its canned sparkling coffee in 2024.

In 2023, it was reported that Philippine’s billionaire Frank Lao bought 35 percent stake in ZUS. The investment is aimed at introducing ZUS Coffee to the Philippines market, according to the report then. Frank owns two well-known brands in the country; Choi Garden restaurant and Gloria Maris.

Malaysia’s ZUS Coffee raises $57.35M from KV Asia Capital, KWAP and Kapal Api for global expansion