KUALA LUMPUR: Kee Ming Group Bhd's share price more than doubled to an intramorning high of 89 sen a share as it made its debut on the ACE Market of Bursa Malaysia.
The strong investor reception comes off the back of a successful initial public offering (IPO), which was 54.16 times oversubscribed.
On Thursday, shares in the mechanical and electrical (M&E) engineering solutions provider rose as much as 134% over its IPO price of 38 sen after 44.33 million shares crossed, which made it the most active ticker in morning trade.
Kee Ming had raised RM31.5mil from the IPO, which will be allocated to working capital, future projects' performance bond, company expansion and the purchase of an enterprise resource planning system.
Initiating coverage on the stock, Maybank Investment Bank gave Kee Ming a "buy" rating and target price of 79 sen a share based on 14 times FY27 price-earnings ratio.
The research firm projects the company will grow at an average annual rate of 41% over three years, underpinned by recognition of the company's RM176mil orderbook and replenishment opportunities from industrial, data centre M&E, and high-volage solar interconnection facilities projects.
Additionally, Maybank IB said Kee Ming could benefit from subcontract work from Solarvest Holdings Bhd
, which has a strategic 23.85% stake in the firm.
Solarvest could potentially subcontract interconnection facilities works for its ongoing LSS5 and LSS5+ project pipeline to Kee Ming. According to Maybank IB, Kee Ming is currently undertaking a RM38mil Kuala Muda project, which is related to a LSS5 project undertaken by Solarvest.
It added that Solarvest has on hand RM390-510mil worth of interconnection facilities work remaining over FY27-28, which could provide a strong potential pipeline to KM for orderbook replenishment.
