KEB Bhd is set to list on the ACE Market on Nov 16, and the KEB ACE Market IPO has drawn two different valuations from research houses. The developer focuses on affordable to medium-priced residential projects. Its listing could support longer-term growth as it expands its landbank and launches new projects.
What Are the Key Terms of the KEB ACE Market IPO?
- Market: ACE Market, Bursa Malaysia
- IPO price: 35 sen per share
- Funds raised: RM48.5 million
- Tentative listing date: Nov 16
- Market capitalisation at IPO price: about RM308.8 million
- Dividend policy: 30 to 50 per cent of profit after listing
The source does not give the subscription period or the number of shares offered. Check the prospectus or your broker for those details.
Where Will the RM48.5 Million Go?
- RM19 million for landbank acquisitions
- RM14.9 million for project development
- RM8.5 million for repayment of bank borrowings
- RM6.1 million for listing expenses
The biggest slice, RM19 million, goes to landbank acquisitions. That is the same pipeline RHB Research says will drive growth.
Why Are RHB Research and TA Securities Split on Valuation?
RHB Research assigns a fair value of 39 sen, an 11 per cent upside from the 35 sen IPO price. TA Securities values KEB at 35 sen, implying no upside.
RHB Research forecasts a dividend yield of about 6.3 per cent for FY27, against 5.7 per cent from TA Securities, both based on the IPO price. The source does not provide peer valuation multiples, so this comparison covers only these two research houses.
What Do the FY26 Profit Forecasts Show for KEB?
- RHB Research: net profit up 9.5% to RM56.5 million in FY26, 7.8% to RM60.9 million in FY27, and 6.4% to RM64.8 million in FY28
- TA Securities: net profit down 9.1% to RM46.9 million in FY26, recovering to RM49.9 million in FY27 and RM53.5 million in FY28
TA Securities ties its FY26 decline to Residensi Cove, where revenue recognition moderates after a strong contribution last year. Its FY27 recovery is backed by new project launches and construction progress.
How Big Is KEB’s Development Pipeline?
KEB’s four ongoing projects carry a combined gross development value (GDV) of RM1.36 billion. Two identified future projects worth RM382.7 million bring the total pipeline to RM1.74 billion, according to TA Securities.
- Residensi Cove (Melaka): 96.1% sold and 96.5% completed as at Sept 25
- Residensi Palma Elit (Kajang): 90.5% sold and 88% completed
- Residensi Embun Palma (Cheras): launch targeted for the fourth quarter of 2026
- Residensi Jentayu (Ulu Langat): launch targeted for the first quarter of 2027
Since entering property development in 2004, KEB has completed 14 projects with a combined GDV of RM1.35 billion.
Can KEB Keep Growing Its Landbank?
KEB aims to launch RM300 million to RM400 million of new projects annually, targeting earnings growth of five to 10 per cent a year. RHB Research points to a remaining landbank of 24.29 hectares, including 6.51 hectares pending acquisition, as the source of further opportunities.
Is KEB Utama Its Margin Edge?
Both research houses single out KEB Utama, the in-house construction arm. RHB Research says it helped KEB post gross margins of 27 to 35 per cent and net margins of 13 to 18 per cent between FY22 and FY25.
TA Securities adds that the arm gives KEB greater control over project costs, quality and delivery schedules.
How to Apply for the KEB ACE Market IPO
Apply through the M+ Global app using Invitation Code UBZQ. For assistance, WhatsApp +60169059789.
- Online applications need a direct CDS account in your own name.
- Only one application per IPO is allowed. Multiple applications are an offence under the Capital Markets and Services Act 2007.
- Retail portions are balloted when the IPO is oversubscribed.
Read the IPO Investing with M+ Global guide before you apply. For payout context, see the Dividend Investing Guide.
📊 On AI Stock Terminal: KEB quarterly results · KEB announcements · Malaysia IPO calendar
Disclaimer: This article is for information only and is not investment advice. Do your own research and consider your risk profile before applying for any IPO.
Key Takeaways
- KEB lists on the ACE Market on Nov 16 at 35 sen, raising RM48.5 million.
- RHB Research’s 39 sen fair value implies 11% upside; TA Securities sees no upside at 35 sen.
- Net profit forecasts diverge: +9.5% in FY26 from RHB Research versus -9.1% from TA Securities.
- The development pipeline totals RM1.74 billion, with a 30 to 50 per cent dividend payout plan.
Frequently Asked Questions
What is the KEB ACE Market IPO price?
The KEB ACE Market IPO price is 35 sen per share. The company aims to raise RM48.5 million, with listing tentatively set for Nov 16.
What fair value does RHB Research give KEB?
RHB Research assigns KEB a fair value of 39 sen, an 11 per cent upside from the IPO price. TA Securities values the stock at 35 sen, implying no upside.
Will KEB’s net profit rise in FY26?
It depends on the research house. RHB Research expects net profit to rise 9.5% to RM56.5 million in FY26, while TA Securities expects a 9.1% fall to RM46.9 million.
How do I apply for the KEB IPO?
Apply through the M+ Global app using Invitation Code UBZQ. You need a direct CDS account in your own name, and only one application per IPO is allowed.
What will KEB use its IPO proceeds for?
KEB will use RM19 million for landbank acquisitions, RM14.9 million for project development, and RM8.5 million to repay bank borrowings. The remaining RM6.1 million covers listing expenses.
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.
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