KUALA LUMPUR (Nov 13): Citaglobal Bhd (KL:CITAGLB) has bagged a RM628 million contract from Jabatan Bekalan Air Malaysia (JBA) for a raw water and flood mitigation project in Selangor.

The contract value is nearly twice the group's market capitalisation, which currently stands at RM349 million. 

The contract will further increase its order book to approximately RM1.7 billion, based on the group’s outstanding order book of RM1.1 billion as at June 2025.

In a bourse filing on Thursday, Citaglobal said its wholly owned subsidiary Citaglobal Land Sdn Bhd (CLSB) had accepted the acceptance letter for the contract, which will see CLSB appointed as the contractor for the project.

In March 2025, JBA issued a tender for the Dual-Function Pond for Raw Water Source and Flood Mitigation Package A Project, and CLSB submitted its bid in July 2025.

The 48-month design-and-build project involves the construction of a weir and raw water pumping station at Sungai Klang, the installation of raw water pipelines from the raw water pumping station at Sungai Klang to Sungai Air Hitam and the upgrading of 10 existing ponds into detention and sedimentation systems.

It also covers the construction of the side spillway and stilling basin near the Sungai Air Hitam-Sungai Klang confluent and the associated mechanical and electrical works, including instrumentation and control system works, and infrastructure works

The job is expected to contribute positively to the group’s earnings, earnings per share and net assets during the contract period.

The project aims to deliver a dual-function pond which will be used for flood mitigation and as a raw water resource, supporting Selangor's water supply security and increasing the state’s reserve margin to over 15%.

At the noon break on Thursday, Citaglobal’s share price was unchanged at 82 sen, giving the group a market capitalisation of RM349 million.