KEB is buying 16 acres in four sites for RM78.5m

KEB Bhd, a Cheras-based property developer listing on Bursa Malaysia's ACE Market on 16 November 2026, is buying four development sites totalling 16.09 acres for RM78.5 million, TA Securities said in a note reported on 30 October. The sites are in Cheras, Bandar Baru Bangi and Kajang in Selangor, and Melaka Tengah, and could carry developments worth about RM1 billion. The price works out to about RM112 per sq ft of land across the four sites.

The four sites

• Size and price: 16.09 acres for RM78.5 million in all. The size and price of each site have not been reported
• Timing: the purchases are due to complete between November 2026 and the first quarter of 2027, TA said
• Signed before the IPO: the prospectus counts the 16.09 acres as land "pending completion" within KEB's 60.01-acre landbank at 25 September, which also includes land held under a joint venture with landowners
• Landbank: 60.01 acres including the pending land, against 29.77 acres at the end of 2025
• Earnings: TA expects projects on the new land to contribute from the 2028 financial year

The IPO

• Price: 35 sen a share, valuing KEB at RM308.83 million. The company raises RM48.49 million. Another RM30.88 million goes to managing director Datuk Lim Kim Chong (KC Lim) and his son, executive director Vinson Lim, who are selling part of their shares. They will keep 52.2% and 15.4%
• Use of the money: RM19 million for more land, RM14.89 million for Residensi Jentayu, RM8.5 million to repay bank loans and RM6.1 million for listing costs. At 25 September KEB had not committed any IPO money to a purchase. It is looking near its existing sites in the Klang Valley, Negeri Sembilan and Melaka
• Demand: the Malaysian public portion was fully subscribed, with 2,126 applications for 44.47 million shares

The company

• Track record: in property development since 2004, with 14 completed projects. They include factories in Semenyih and Kajang, shops in Klang, and homes around Cheras, Kajang and Semenyih. Its own contractor, KEB Utama, holds the top CIDB G7 grade
• Pipeline: four ongoing projects worth RM1.36 billion and two future projects worth RM382.73 million
• Next launches: Residensi Embun Palma in Cheras (RM160.5 million) in the fourth quarter of 2026, and Residensi Jentayu in Ulu Langat (RM429.42 million; 1,114 serviced apartments, 280 affordable units and 10 shops) in the first quarter of 2027. Residensi Cove is its first project in Melaka
• Results: net profit of RM51.61 million on revenue of RM359.27 million in 2025, on an audited combined basis

What analysts said

• RHB Investment Bank: fair value 39 sen, about 11% above the IPO price, and 2027 net profit of RM60.9 million. KEB aims to launch RM300 million to RM400 million of projects a year, mainly in the southern Klang Valley, Negeri Sembilan and Melaka
• TA Securities: fair value 35 sen, the IPO price, and 2027 net profit of RM49.9 million