KEB Bhd sets ACE IPO price at 35 sen, targets proceeds of nearly RM80 million

Highlights

KEB Bhd sets its ACE IPO price at 35 sen, expecting to raise RM48.49 million for the company and RM30.88 million for existing shareholders.
KEB will use RM19 million for land acquisition, RM14.89 million for working capital for property development, and RM8.5 million for loan repayments.
Following its listing on 16 November, KEB is expected to reach a market capitalisation of RM308.83 million, equivalent to six times FY25 net earnings of RM51.61 million.

This article was translated from the original. Read the original version by our correspondent here.

IPO pricing details and use of proceeds

As reported by The Edge Malaysia, KEB Bhd's prospectus, released on Friday, shows that the company will raise RM48.49 million from the listing, while the remaining RM30.88 million will go to existing shareholders Datuk KC Lim and his son, Vinson Lim, through their share sale offer.

Applications for the IPO close on 2 November, while the listing is scheduled for 16 November. Of the proceeds received by the company, RM19 million is allocated for land acquisition, RM14.89 million for working capital for property development, and RM8.5 million for bank loan repayments. The remaining RM6.1 million will be used to cover listing expenses.

M&A Securities Sdn Bhd is acting as the IPO's principal adviser, sponsor, underwriter and placement agent, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.

Project scale and post-listing position

KEB develops residential, industrial, commercial and mixed-use projects, primarily in central Malaysia, with a focus on affordable to mid-priced properties. The Cheras-based company is currently developing two residential projects with a combined gross development value of RM773 million.

In addition, KEB has four future projects worth RM941 million and a land bank of nearly 30 acres. Following the listing, the company is expected to have a market capitalisation of RM308.83 million, valuing KEB at approximately six times its earnings for the financial year ended 31 December 2025, when reported net profit totalled RM51.61 million.

After the IPO, Lim, the company's managing director, will retain a 52.2% stake, while his son, who is also an executive director of KEB, will hold 15.4%. This shareholding structure maintains family control as the company seeks to strengthen its funding pipeline for new project expansion.

Propel Global Bhd's move to diversify into property development, which we previously reported on, included plans to seek shareholder approval following the launch of its first commercial project in Kuantan, with a gross development value of RM64 million. The article also outlined the target for the project to contribute more than 25% of the group's net profit in the future, as well as pressure on the company's financial performance amid a widening net loss and declining revenue.

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