This article first appeared in Capital, The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026
JOHOR-based construction services firm SLGC Bhd (KL:SLG) is slated to list on the ACE Market on Oct 6. At 28 sen per share, SLGC is valued at a price-earnings (PE) multiple of about 11.2 times, based on an earnings per share (EPS) of 2.5 sen for the financial year ended Dec 31, 2025 (FY2025).
The initial public offering (IPO) price values the group at RM156.8 million based on its enlarged share capital of 560 million shares upon listing. SLGC plans to use RM9.24 million of the IPO proceeds to buy construction machinery and RM7.56 million to repay bank borrowings. Another RM7.5 million has been earmarked for general working capital, RM500,000 to upgrade its construction management software and RM4.6 million for listing expenses.
The group recorded a net profit of RM6.01 million on revenue of RM149.22 million for the four months ended April 30, 2026. Its managing director Yong Zhen Lin says the group is looking to grow its commercial and industrial (C&I) segment, which currently accounts for only a small portion of its order book.
He says the group is in negotiations with clients on the design and costing of potential C&I projects, and adds that it intends to keep design-and-build work as a core focus over the next three years, while prioritising completion of its existing projects.
Yong adds that SLGC hopes to grow towards the scale of larger listed contractors.
The IPO comprises a public issue of 105 million new shares, representing 18.75% of SLGC’s enlarged share capital, and an offer for sale of 63 million existing shares, or 11.25% of its enlarged share capital.
The offer-for-sale shares are expected to raise RM17.64 million for the selling shareholders.
Of the new shares, 28 million are available to the Malaysian public, while two million are reserved for eligible directors and employees. Another 70 million shares are allocated to bumiputera investors approved by the Ministry of Investment, Trade and Industry, while the remaining five million shares are offered to selected investors.
The public tranche was oversubscribed by 3.06 times, drawing 4,647 applications for about 113.7 million shares against the 28 million available. The bumiputera tranche was oversubscribed by 1.24 times, while the private placement was fully taken up.
Upon listing, Yong will remain SLGC’s largest shareholder with a 59.6% direct stake, comprising 333.75 million shares, while SLGC project director Liang Yan Herng and contract director Loo Chun Kok will each hold 4.29%, or 24 million shares, in the company.
RHB Investment Bank in a Sept 21 note set a fair value on the stock of 40 sen, which is 10.5 times forecast FY2027 earnings, and about 43% above the IPO price. RHB also noted that SLGC’s order book is roughly three times FY2025 revenue of RM324 million and that C&I projects account for around 70% of the company’s tender pipeline.
SLGC’s peers include Kerjaya Prospek Property Bhd (KL:KPPROP), Binastra Corp Bhd (KL:BNASTRA), Mitrajaya Holdings Bhd (KL:MITRA), Nestcon Bhd (KL:NESTCON) and Kumpulan Kitacon Bhd (KL:KITACON).
RHB observes that SLGC, a Construction Industry Development Board (CIDB) G7 building contractor, has a 17-year track record, has completed more than 20 projects worth RM1.04 billion in contract value since its establishment, and has 10 ongoing projects worth RM1.42 billion. “Its G7 registration allows it to tender for contracts of unlimited value, while value engineering (the evaluation of designs, methods and materials to hit the required technical specification at lower cost) is its core differentiator, supported by industrialised building system (IBS) methods including aluminium formwork and the PD8 shoring system.
“Relationships with Eco World Development Group Bhd (KL:ECOWLD), OSK Property, Land & General Berhad (KL:L&G), Bandar Raya Development Bhd and Daiwa House Malaysia Logistic, alongside PNSB Construction panel status for Selangor state affordable housing, should underpin order book replenishment,” it says.
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