KUALA LUMPUR (Nov 6): TA Securities has assigned a target price of 37 sen per share for Aquawalk Group Bhd, representing a 20.2% upside from its initial public offering (IPO) price of 31 sen.
The research house derived the valuation based on 13 times calendar year 2026 earnings per share, reflecting a 25% discount to regional peers’ average price-earnings ratio of 17.3 times. The stock is not rated by TA Securities.
Aquawalk, Malaysia’s largest private aquarium operator, is slated to list on the ACE Market on Nov 19.
The IPO involves 368.6 million new shares and 368.6 million existing shares, representing 40% of its enlarged share capital and valuing the company at RM571.3 million.
Meanwhile, the group expects to raise RM114.2 million in gross proceeds, of which RM89.7 million will be allocated for capital expansion, RM3 million for information technology system upgrades, RM14.5 million for working capital, and RM7 million to cover listing expenses, said TA Securities in a note on Thursday.
The research house noted that Aquawalk’s earnings growth is underpinned by the post-pandemic recovery in tourism, new attractions at Aquaria KLCC and Aquaria Phuket, and the planned development of new oceanariums in Kota Kinabalu and Java.
Separately, the group’s net profit is forecast to rise 8.2% in the financial year ending Dec 31, 2025 (FY2025) and 7.1% in FY2026, with projected dividend yields of 2.6% to 3% based on a 30% payout policy, the house added.
Founded in 2005, Aquawalk operates and co-owns aquariums in Malaysia, Thailand, and Indonesia, and also offers aquarium design, development, and maintenance services through its subsidiary Aquablu Technologies.
TA Securities noted that the company’s niche market focus, high entry barriers, and strong in-house technical capabilities provide it with a solid competitive advantage.