RHB Sees 77% Upside for SKACAP IPO as Grid and Data-Centre Demand Fuels Growth
Octopaul AI ·
RHB Investment Bank analyst Max Koh assigned SKA Capital a RM0.76 fair value in his IPO note, implying 76.7% upside from its RM0.43 IPO price. With more than 17 years of operating experience in power infrastructure, SKA Capital is positioned to benefit from rising substation and data-centre projects from Tenaga Nasional and the private sector, according to Max.
Its acquisition of Reltency Engineering Services expands its capabilities beyond civil and structural works into large-scale 500kV EPCC projects. Contracts secured include 500kV substation works for Tenaga Nasional and underground utilities works for data centres. Its outstanding order book stood at approximately RM313 million as at September 21.
Looking ahead, Max forecasts core net profit to grow at a compound annual rate of approximately 28% between 2025 and 2028, rising from RM22 million to RM45.8 million. His forecasts assume RM400 million in annual new contract wins in 2027–2028.
The expected RM72.3 million in gross IPO proceeds includes RM12.1 million for machinery and equipment and RM21 million for performance-bond deposits, supporting larger project bids and reducing reliance on rented equipment and subcontractors.
IPO applications for SKA Capital will close on October 27, ahead of its planned ACE Market listing on November 11.
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