KUALA LUMPUR (July 6): Stratus Global Holdings Bhd’s initial public offering (IPO) price leaves substantial upside for investors, according to Malacca Securities, which assigned the Main Market-bound semiconductor automation firm a fair value of RM2 per share.

The fair value is 150% above Stratus Global’s IPO price of 80 sen. At the IPO price, the company is valued at about 20 times its latest reported earnings, while Malacca Securities’ valuation is based on about 42 times its projected earnings for the financial year ending March 2028 (FY2028).

Malacca Securities said Stratus Global’s earnings are expected to grow over the next three years, supported by the global semiconductor upcycle, rising artificial intelligence-related demand, overseas expansion and the partial commencement of its new facility from the third quarter of 2028.

Based in Penang, Stratus Global specialises in cleanroom automated material handling systems, or AMHS, for the semiconductor industry. Its systems are used to move and store critical materials such as silicon wafers within chip manufacturing facilities.

Stratus Global has earmarked RM122.6 million or 43% of its IPO proceeds for a new multi-storey facility opposite its Bayan Lepas site, as its existing factories are running near full capacity.

The new facility will more than double its production space and is expected to start operations in phases from the third quarter of 2028.

Malacca Securities said the new facility would ease capacity constraints and support Stratus Global’s RM108.4 million order book, most of which is expected to be recognised in FY2027.

Stratus Global also plans to set up sales and engineering support offices in Japan, Taiwan, Germany and the US over the next three years. North America and Europe collectively accounted for more than 80% of the group’s FY2026 revenue, the research house said.

For the financial year ended March 2026, Stratus Global’s net profit fell 23% to RM51.1 million, while revenue declined 11% to RM197.1 million, mainly due to lower project billings.

The research house also flagged several risks, including foreign exchange exposure as most of Stratus Global’s revenue comes from overseas markets, customer concentration and possible delays or cost overruns in the new facility expansion.

Applications for Stratus Global’s IPO opened on July 2 and will close on July 10. The company is scheduled to list on the Main Market of Bursa Malaysia on July 21.