KUALA LUMPUR: KEB Bhd is seeking to raise RM79.37 million through its initial public offering (IPO) on the ACE Market of Bursa Malaysia, with proceeds to support landbank expansion, project development and debt repayment.
The property developer will receive RM48.49 million from the issuance of 138.54 million new shares at 35 sen each, while the remaining RM30.88 million will go to existing shareholders Datuk Lim Kim Chong and his son Vinson Lim from the sale of 88.24 million existing shares.
Of the proceeds accruing to the company, RM19 million will be used for landbank acquisition, RM14.89 million for project development working capital, RM8.5 million to repay bank borrowings and RM6.1 million to defray listing expenses.
KEB executive director Vinson Lim said the group was still identifying suitable land parcels for future developments, with the Klang Valley, Malacca and Negeri Sembilan among its target locations, although it remained open to opportunities in other states.
“We are now looking at land around Klang Valley, Malacca or Negeri Sembilan, but we are also open to other states,” he told a press conference after the prospectus launch today.
The landbank allocation would prepare the group for future acquisitions as it replenishes its development pipeline.
KEB is targeting revenue of about RM300 million in Financial Year 2026 (FY26), following a sharp increase in FY25 revenue driven largely by its flagship property development.
Revenue rose to RM359.27 million in FY25 from RM187.46 million in FY24, while net profit increased to RM51.61 million from RM33.42 million.
Vinson said the flagship development contributed more than 80% of the group’s FY25 revenue.
For the four-month period in 2026, KEB recorded revenue of RM87.96 million and net profit of RM14.05 million.
Rising construction costs had a limited direct impact on KEB, as its in-house construction capabilities helped it manage expenses, Vinson said. “Because we are an in-house construction company, we are able to manage cost efficiency. The direct impact of construction costs is not much, but indirectly, there will be an impact.”
KEB recorded a gross profit margin of 29.9% and a net profit margin of 14.4% in FY25.
Vinson said the group adopted a measured approach to project launches, generally targeting one to three developments annually based on market demand and feasibility studies.
“We always cater to the demand. We don’t try to go up just to earn the money, to supply more apartments,” he added.
Vinson said the company assessed the viability of potential sites, local demand and surrounding infrastructure before proceeding with land acquisitions or joint ventures.
KEB’s current residential developments, Residensi Cove and Residensi Palma Elit, has achieved take-up rates of 96% and 90% respectively, according to Lim.
The group is preparing further launches to sustain its development pipeline while maintaining disciplined cash-flow management and a development schedule aligned with market demand.
Operating since 2004, KEB has completed 14 property development projects and has a landbank of about 60.01 acres, including land acquisitions that had not yet been completed as at the latest practicable date stated in its IPO materials.
The company undertakes construction activities through subsidiary KEB Utama Sdn Bhd, which holds a Grade G7 registration from the Construction Industry Development Board.
Applications for the IPO close on Nov 2, with listing scheduled for Nov 16.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser for the IPO.