EGHI to raise funds via IPO

From left: EGH International Bhd non- independent non-executive director Clement Valentine Toh, independent non-executive directors Yeoh Chong Keat and Chin Man Yee, Lim, independent non-executive chairman Datuk Dr Dionysia Kibat, group chief executive officer Jessie Lim, Berjaya Securities Sdn Bhd capital markets/corporate finance head Anuar Omar and executive advisor Pua Kin Joh posing for a group photo at the EGH International Bhd IPO prospectus launch in Kuala Lumpur.

PETALING JAYA: EGH International Bhd (EGHI) is seeking to raise funds via an initial public offering (IPO) involving 240 million new shares and an offer for sale of 120 million existing shares at 16 sen each.

The issuance represents 36% of its enlarged share base, valuing the interior fit-out solutions provider at a market capitalisation of RM160mil.At its IPO price of 16 sen, EGHI trades at a price-to-earnings ratio (PER) of 13.2 times based on its FY26 core earnings per share (EPS).

TA Research has derived a fair value of 22 sen for the group, representing a 37.5% upside, pegged to an 11 times target PER against FY27 EPS forecasts.

This valuation reflects a 40% discount to its construction sector coverage average PER of 17.7 times, owing to EGHI’s smaller post-listing market size.

The research house noted that EGHI’s earnings trajectory is well-supported by a solid RM313.5mil unbilled order book, established turnkey and design-and-build capabilities, an experienced management team, and ongoing expansion plans.

TA Research has a “not rated” call on the stock while highlighting its potential valuation upside.