This article first appeared in Capital, The Edge Malaysia Weekly on May 4, 2026 - May 10, 2026
ENCOURAGED by the strong market debuts of interior fit-out specialists Signature Alliance Group Bhd (KL:SAG) and Adnex Group Bhd (KL:ADNEX), another player in the same space is set to list on Bursa Malaysia’s ACE Market.
Inspace Creation Bhd (KL:INSPACE) has seen strong demand for its initial public offering (IPO), with the public tranche of 68.5 million new shares priced at 25 sen each oversubscribed by 70.3 times. The strong response underscores continued investor interest in Malaysia’s interior fit-out and construction support services segment.
The group is scheduled to make its debut on May 8. Judging from analysts’ recommendations, trading sentiment is expected to mirror the positive first-day performances of recent comparable listings. Signature Alliance, a subsidiary of Main Market-listed Signature International Bhd (KL:SIGN), ended its first trading day in June 2025 with a 12.9% gain, while Adnex rose 25% on its trading debut in March.
Malacca Securities assigned a fair value of 36 sen to Inspace Creation, implying a 44% upside from the IPO price, based on a price-earnings ratio (PER) of 12.5 times its forecast financial year ending Nov 30, 2027 (FY2027) earnings per share (EPS) of 2.88 sen.
Meanwhile, PublicInvest Research assigned a fair value of 33 sen, based on a 12 times PER applied to its FY2027 estimated EPS of 2.8 sen. Mercury Securities ascribed a lower PER of 11 times to an estimated FY2027 EPS of 2.86 sen, resulting in a fair value of 31.4 sen.
“We are deeply encouraged by the strong investor interest, which underscores the market’s confidence in our capabilities and our ability to deliver high quality, end-to-end interior solutions for a diverse corporate clientele,” says executive director and largest shareholder Wong Chong Siong in a statement following the share balloting exercise.
The IPO entails the issuance of 97.8 million ordinary shares, comprising a public issue of 68.5 million new shares and an offer for sale of 29.3 million existing shares by the promoters and substantial shareholders of Inspace Creation.
The public issue represents 18.55% of Inspace Creation’s enlarged share base, while the offer-for-sale shares account for 7.93%. In total, 26.48% of the company’s shares will be in public hands. TA Securities Holdings Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO.
Wong and Edward Cheong Han Bin, another executive director, are the promoters and substantial shareholders of Inspace Creation through Conceptual Holdings Sdn Bhd, which owns 75% of the group’s issued shares prior to the IPO. Wong also holds a direct 25% stake in the company.
Following the IPO, Wong’s direct stake is expected to be diluted to 14.14%, while Conceptual Holdings’ stake will decline to 59.38%.
The IPO is expected to raise about RM17.13 million, of which RM6 million has been allocated for capital expenditure to establish a storage and mock-up space, enhancing Inspace Creation’s capabilities and capacity.
The group plans to acquire an industrial building in the Klang Valley with a target built-up area of 4,800 sq ft. Of this, 3,000 sq ft will be used for storage, while the remainder will serve as a mock-up space.
“The establishment of a storage space will enable us to store frequently used materials such as wall and floor finishes, task chairs, and loose and system furniture, allowing bulk procurement at preferential rates while reducing reliance on suppliers’ delivery schedules.
“This is expected to improve our cost efficiency and profitability,” the group says in its prospectus.
The mock-up space will allow Inspace Creation to showcase furniture, fittings, designs and material options, providing clients with a visual representation and tactile experience of the final output.
The group is also allocating RM4.39 million for working capital, RM2.74 million to repay bank borrowings and RM4 million to defray listing expenses.
Founded in 2018, Inspace Creation provides end-to-end interior fit-out solutions covering design, construction and post-completion maintenance. Through its subsidiary IDPM Sdn Bhd, the group holds a Construction Industry Development Board Grade 7 licence, enabling it to undertake projects of unlimited value nationwide.
To date, the group has completed more than 110 projects worth over RM170 million, including fit-outs at Tun Razak Exchange, Bukit Bintang, and other key commercial developments across the Klang Valley.
The IPO aims to enhance the group’s market visibility, enabling it to secure larger commercial projects and expand its footprint into regional markets beyond the Klang Valley, thereby reducing geographic concentration risk.
“We aim to broaden our project portfolio by expanding into other commercial segments such as hotel lobbies, common areas and show galleries,” Inspace Creation said in its prospectus.
Its revenue grew at a compound annual growth rate (CAGR) of 58.36% over the three years to FY2025, reaching RM78.6 million. Net profit rose at a CAGR of 200.78% to RM8.38 million over the same period.
Malacca Securities projects a three-year earnings CAGR of 14.3%, with core net profit expected to reach RM10 million, RM11.2 million and RM12.1 million over the next three years.
While bullish on the group’s prospects, analysts note that Inspace Creation’s performance depends on its ability to continuously secure new contracts and replenish its order book.
As at April 13, Inspace Creation had an unbilled order book of RM30.3 million across 18 projects, expected to be recognised within three to six months.
The group relies heavily on subcontractors for installation and material supply, with subcontracting and material costs accounting for 85.9% of total cost of sales in FY2022, 89.7% in FY2023, 87% in FY2024 and 89.1% in FY2025.
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