KEB Bhd has priced its shares at 35 sen apiece for its listing on the ACE Market of Bursa Malaysia. The KEB ACE Market IPO will raise RM79.37 million, according to the prospectus unveiled on Friday.
Why Is the KEB ACE Market IPO Priced at 35 Sen?
KEB is a Cheras-based developer of residential, industrial, commercial and mixed-use properties. Its focus is mainly central Malaysia, with affordable to medium-priced homes.
Two residential projects under development carry a combined gross development value of RM773 million. Four future projects are valued at RM941 million, backed by nearly 30 acres of land bank.
How Will KEB Spend Its RM48.49 Million IPO Proceeds?
- RM19 million for land acquisitions
- RM14.89 million for property development working capital
- RM8.5 million for repayment of bank borrowings
- RM6.1 million for listing expenses
The four allocations total RM48.49 million, matching the primary raise to the company. The RM30.88 million offer for sale goes to KC Lim and his son Vinson Lim, not to KEB.
Does KEB’s Six-Times Earnings Valuation Stand Out?
At the IPO price, KEB will have a market capitalisation of RM308.83 million. That values the company at about six times its earnings for FY2025, when reported net profit was RM51.61 million.
Revenue and earnings per share were not included in the source figures, so the valuation rests on the net profit line alone. Compare the six-times multiple against listed developers on Bursa Malaysia before reading it as cheap or expensive.
Who Controls KEB Shares After the IPO Listing?
KC Lim, the managing director, will retain a 52.2% stake after the listing. His son Vinson Lim, an executive director, will hold 15.4%.
Together, the father and son will hold a combined 67.6% of KEB post-IPO.
When Do KEB IPO Applications Close and List?
- Market: ACE Market, Bursa Malaysia
- Offer price: 35 sen per share
- Total IPO raise: RM79.37 million
- Applications close: Nov 2
- Listing date: Nov 16
- Principal adviser, sponsor, underwriter and placement agent: M&A Securities Sdn Bhd
- Financial adviser: Eco Asia Capital Advisory Sdn Bhd
How Can Retail Investors Apply for the KEB IPO?
Online applications need a direct CDS account in the applicant’s own name. Submit only one application per IPO, because multiple applications are an offence under the Capital Markets and Services Act 2007.
Apply through the M+ Global app using Invitation Code UBZQ. For assistance, WhatsApp +60169059789. Retail portions are balloted if the IPO is oversubscribed. Read the IPO Investing with M+ Global guide for the full process.
What Are the Key Risks for KEB Shareholders?
- Ownership concentration: The Lim family holds a combined 67.6% post-IPO.
- Project dependence: The RM941 million pipeline is not yet built, while the two projects worth RM773 million are still in development.
- Geographic focus: KEB concentrates on central Malaysia.
- Debt: RM8.5 million of proceeds goes to repaying bank borrowings.
The land bank and pipeline are worth monitoring as KEB converts them into revenue. This article is general information, not investment advice. Do your own research before deciding on any IPO.
Key Takeaways on the KEB ACE Market IPO
- KEB Bhd raises RM79.37 million at 35 sen per share on the ACE Market.
- RM48.49 million goes to the company; RM30.88 million goes to KC Lim and Vinson Lim.
- Applications close on Nov 2 and listing is scheduled for Nov 16.
- The IPO values KEB at RM308.83 million, about six times FY2025 net profit of RM51.61 million.
Frequently Asked Questions
How much is the KEB ACE Market IPO raising?
The KEB ACE Market IPO will raise RM79.37 million. RM48.49 million goes to the company, and RM30.88 million goes to existing shareholders KC Lim and Vinson Lim.
When do KEB IPO applications close and when does it list?
Applications close on Nov 2. Listing on the ACE Market is scheduled for Nov 16.
What is KEB’s valuation at the IPO price?
KEB will have a market capitalisation of RM308.83 million. That is about six times its FY2025 net profit of RM51.61 million.
How do I apply for the KEB IPO?
Apply through the M+ Global app using Invitation Code UBZQ, with a direct CDS account in your own name. For assistance, WhatsApp +60169059789.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,200+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
