SKA Capital IPO investors now have a broker’s valuation to weigh. PublicInvest has given SKA Capital Bhd a target price of 70 sen, 63% above the 43 sen offer price. The report, dated the 26th, covers an electrical and underground engineering contractor bound for Bursa Malaysia’s ACE Market.
Why Is PublicInvest Valuing SKA Capital IPO Shares at 70 Sen?
PublicInvest applied a 16x P/E multiple. The industry standard it cites is 20x, a gap of four turns.
The lower multiple reflects SKA Capital’s smaller market capitalisation and its expected 2027 earnings.
What Business Is SKA Capital Bhd Running?
SKA Capital’s business covers three areas:
- Substation engineering services
- Underground pipeline engineering services
- Trading of electrical equipment, electrical materials and building materials for power infrastructure works
PublicInvest links the growth case to long-term economic growth and data centre expansion. It says both will drive demand for electricity and power generation investment.
How Will SKA Capital Spend Its RM103.4 Million IPO Proceeds?
The IPO raised RM103.4 million. Of this, RM72.3 million is allocated to the following:
- Working capital
- Listing expenses
- Performance bonds to secure future projects
- New machinery, including expanding horizontal directional drilling (HDD) capacity
The remaining RM31.1 million is not broken down in the report.
PublicInvest expects growth from buying machinery, expanding underground pipeline capability and insourcing more HDD work. The company also aims to win larger, more complex projects in Peninsular Malaysia.
How Does SKA Capital’s 16x P/E Compare With Industry Peers?
The 16x multiple sits four turns below the 20x industry standard used in the valuation. The report does not name individual peers or their multiples.
The report does not disclose SKA Capital’s revenue, net profit or earnings per share. The 16x multiple therefore cannot be tested against past earnings using this report alone.
How to Apply for SKA Capital IPO via M+ Global
- Market: ACE Market
- Offer price: 43 sen per share
- Total funds raised: RM103.4 million
- Subscription period: not stated in the report
- Listing date: not stated in the report
- Oversubscription: not disclosed in the report
Apply through the M+ Global app using Invitation Code UBZQ. For assistance, WhatsApp +60169059789.
Online applications require a direct CDS account in your own name. Submit only one application per IPO, as multiple applications are an offence under the Capital Markets and Services Act 2007.
If the IPO is oversubscribed, retail portions are balloted. Read more in our IPO Investing with M+ Global guide.
What Are the Risks for SKA Capital Shareholders?
The valuation rests on earnings growth tied to data centre expansion and power investment. If demand in those areas slows, the 2027 earnings behind the 16x multiple come under pressure.
PublicInvest already cites the company’s smaller market capitalisation as a reason for the discount. Its planned machinery purchases also depend on how the IPO proceeds are deployed.
📊 On AI Stock Terminal: SKACAP quarterly results · SKACAP announcements
Disclaimer: This article is for information only and is not financial advice. Investors may want to watch the subscription and listing announcements for SKA Capital, which the report does not date. Do your own research before making any decision.
Key Takeaways
- PublicInvest’s 70 sen target is 63% above the 43 sen IPO offer price.
- The 16x P/E sits below the 20x industry standard, citing SKA Capital’s smaller market capitalisation and 2027 earnings.
- The IPO raised RM103.4 million, with RM72.3 million earmarked for working capital, listing expenses, performance bonds and machinery.
- The report does not disclose revenue, net profit, EPS, subscription dates or the listing date.
Frequently Asked Questions
What is the SKA Capital IPO price?
The SKA Capital IPO offer price is 43 sen per share. PublicInvest’s target price of 70 sen is a 63% premium to that level.
How much did SKA Capital raise in its IPO?
SKA Capital raised RM103.4 million in its IPO. RM72.3 million is earmarked for working capital, listing expenses, performance bonds and new machinery.
Which market is SKA Capital listing on?
SKA Capital Bhd is bound for Bursa Malaysia’s ACE Market. The report does not state the subscription period or listing date.
How can Malaysians apply for the SKA Capital IPO?
Apply through the M+ Global app using Invitation Code UBZQ, with a direct CDS account in your own name. For assistance, WhatsApp +60169059789.
Why is PublicInvest’s SKA Capital valuation lower than the industry?
PublicInvest uses a 16x price-to-earnings multiple against the 20x industry standard. It cites SKA Capital’s smaller market capitalisation and its 2027 earnings expectations.
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?
