KEB Bhd IPO fully subscribed ahead of ACE Market listing

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KEB Bhd IPO fully subscribed

Highlights

KEB Bhd's IPO, priced at 35 sen per share, was fully subscribed, with 2,126 applications for 44.47 million shares valued at RM15.57 million.
The offering raised RM79.37 million, of which RM48.49 million goes to the company and RM30.88 million to Datuk Lim Kim Chong and Vinson Lim.
At the IPO price, KEB's market capitalisation is expected to be RM308.83 million, equivalent to approximately six times its earnings for the financial year ended 31 Dec 2025.

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

Subscription details and IPO structure

As reported by The Edge Malaysia, citing a Bursa Malaysia filing, the company received 2,126 applications for 44.47 million shares valued at RM15.57 million, against the 44.12 million shares allocated to the Malaysian public. The Bumiputera tranche recorded a subscription rate of 1.24 times, with 1,071 applications for 27.31 million shares.

The non-Bumiputera tranche received 1,055 applications for 17.16 million shares, below the 22.06 million shares initially allocated. The shortfall was addressed through a reallocation in the IPO.

Meanwhile, all 22.06 million shares allocated to eligible persons were fully subscribed, while all shares in the private placement to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade and Industry were fully placed. Notices of share allocation will be issued by 12 Nov at the latest.

KEB's IPO is priced at 35 sen per share and comprises 138.54 million new shares and an offer for sale of 88.24 million existing shares. The offering is expected to raise RM79.37 million, with RM48.49 million going to the company and RM30.88 million allocated to shareholders Datuk Lim Kim Chong and his son, Vinson Lim.

Use of proceeds and business position

Of the proceeds received by the company, RM19 million is allocated for land acquisitions, RM14.89 million for working capital and RM8.5 million for bank loan repayments. The remaining RM6.1 million will be used to cover listing expenses.

Based in Cheras, KEB develops residential, industrial, commercial and mixed-use properties, primarily in central Malaysia. The group has four ongoing developments with a combined gross development value of RM1.36 billion, as well as two future projects valued at RM382.73 million.

At the IPO price, KEB is expected to have a market capitalisation of RM308.83 million, valuing the company at approximately six times its earnings for the financial year ended 31 Dec 2025. M&A Securities Sdn Bhd is acting as principal adviser, sponsor, sole underwriter and sole placement agent, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.

Propel Global Bhd's diversification into property development was covered in an earlier report, as the company planned to seek shareholder approval following the launch of its first commercial project in Kuantan, with a gross development value of RM64 million. In a Bursa Malaysia filing, Propel said the property segment is targeted to contribute more than 25% of net profit in the future, as its financial performance remains under pressure, with net losses widening and revenue declining.

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