KUALA LUMPUR (Oct 26): ACE Market-bound SKA Capital Bhd has secured six subcontracts worth a combined RM89.28 million for electrical infrastructure works related to Tenaga Nasional Bhd (TNB) (KL:TENAGA) projects, ahead of its ACE Market listing on Nov 11.
The electrical engineering firm said its wholly-owned subsidiary SKA Rekabina Sdn Bhd accepted a letter of award (LOA) from Ibrahim & Sons Engineering Sdn Bhd on Friday (Oct 23) to undertake works under six contracts awarded by TNB, according to a bourse filing on Monday.
The six jobs cover the installation, testing and commissioning of 11kV and 33kV underground cables and related accessories. They also involve the construction of two 33/11kV main distribution substations in Kuantan, Pahang, and Chendering, Terengganu, as well as underground cable and jointing works for TNB's grid in Selangor.
The projects are expected to be completed within 18 months from their commencement dates.
Under the LOA, SKA Rekabina will receive 90% of approved progress claims, with the remaining 10% retained until completion of the works.
The subsidiary is also required to provide 5% in performance security of each subcontract within 28 days of accepting the LOA.
Ibrahim & Sons, which was incorporated in 2019, is TNB's main engineering contractor for the six projects.
SKA Capital launched its initial public offering (IPO) at 43 sen per share last Tuesday (Oct 20), seeking to raise RM103.4 million.
Of the total, RM72.3 million will go to the company, while managing director Datuk Subas Kumar Ambairam will pocket RM31.13 million from an offer for sale of his shares.
The company plans to allocate RM32.72 million for working capital, RM21 million for performance bonds to secure future projects, RM12.05 million for machinery and equipment purchases, and the remaining RM6.5 million for listing expenses.
The company previously reported an outstanding order book of approximately RM313 million, before the latest contracts.
SKA Capital mainly provides substation engineering services, underground utilities engineering services and trading of electrical devices, equipment and construction materials for power infrastructure engineering.
At its IPO price of 43 sen, the company is expected to have a market capitalisation of RM385 million upon listing, valuing it at about 13 times its trailing earnings.
Earlier on Monday, Public Investment Bank Bhd (PublicInvest) assigned a fair value of 70 sen to SKA Capital, representing a 63% premium over its IPO price.
The research house based its valuation on a price-to-earnings multiple of 16 times SKA Capital's projected 2027 earnings, a discount to the industry benchmark of 20 times to reflect the company's smaller market capitalisation.
PublicInvest projected SKA Capital's earnings to grow at a three-year compound annual growth rate of 27%, supported by rising electricity demand and continued investments in power infrastructure, including data centre developments.
SKA Capital recorded a net profit of RM30.8 million on revenue of RM241.36 million in 2025.
Applications for its IPO close on Tuesday (Oct 27). TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent.