KEB Berhad IPO (KEB 0481): Cheras Property Developer Heads to ACE Market at 6x PE
KEB Berhad opened its IPO for applications on 23 October 2026 at RM0.35 per share, and is scheduled to list on the ACE Market of Bursa Malaysia on 16 November 2026 under the stock name KEB (code 0481). It is a property developer from Cheras, Selangor that builds affordable to mid-range homes in the Klang Valley, Negeri Sembilan and Melaka, including its largest project, Residensi Cove in Melaka.
At first glance, the numbers look cheap: a PE of around 6 times and an IPO price almost equal to net asset value per share. But property investors know a low PE alone is not enough. This article summarises the key facts from the official prospectus dated 23 October 2026: the offer details, financial performance, project pipeline, use of proceeds, and the risks you should weigh before applying.
Who Is KEB Berhad?
KEB Berhad is an investment holding company incorporated on 6 October 2023 for the purpose of the listing. The actual business runs through seven wholly owned subsidiaries (KEB Land, KEB Netizen, KEB Properties, KEB Region, KEB Residence, KEB Resources and KEB Utama), which were acquired on 1 July 2026 for RM245.47 million.
The group's history goes back much further. Its founder, Datuk KC Lim (Datuk Lim Kim Chong), started out as an electrical technician in 1985, entered property development in 2003, and the group's first project, Meru Shoplots in Klang, was launched in 2008. He is now the Managing Director and will hold 52.2% of the company after the IPO. His son, Vinson Lim, is an Executive Director in charge of project planning, business development, and sales and marketing, with a 15.4% stake after the IPO.
Project Track Record and Development Pipeline
KEB has completed 14 projects with 3,256 units and a gross development value (GDV) of around RM1.35 billion, covering shop offices, factories, terrace houses and high-rise apartments. Its subsidiary KEB Utama holds a CIDB G7 grade and acts as the main contractor for the group's own projects.
| Project | Location | GDV | Status |
|---|---|---|---|
| Residensi Cove | Kota Syahbandar, Melaka | RM665.2 million | 96.5% complete, 96.1% of units sold |
| Residensi Palma Elit | Kajang, Selangor | RM105.9 million | 88% complete, 90.5% of units sold |
| Residensi Embun Palma | Cheras, Selangor | RM160.5 million | Not yet launched (targeted Q4 2026) |
| Residensi Jentayu | Ulu Langat, Selangor | RM429.4 million | Not yet launched (targeted Q1 2027) |
| Mukim Beranang | Beranang, Selangor | RM219.5 million | Future project (2027) |
| Mukim Cheras (Lot 67162) | Bandar Mahkota Cheras | RM163.2 million | Future project (2028) |
Overall, ongoing projects carry a GDV of RM1.36 billion and future projects RM382.7 million, bringing the total pipeline to around RM1.74 billion, backed by a land bank of 60.01 acres. That is roughly 5.6 times the company's market cap at the IPO price.
KEB Berhad IPO Details
| Details | Information |
|---|---|
| Company Name | KEB Berhad |
| Stock Name / Code | KEB / 0481 |
| Market | ACE Market, Bursa Malaysia |
| IPO Price | RM0.35 per share |
| Shariah Status | Shariah compliant (classified by the SC Shariah Advisory Council) |
| Total Shares After IPO | 882,385,700 shares |
| Market Cap at IPO Price | RM308.83 million |
| Public Issue (new shares) | 138,535,000 shares (15.7%) - RM48.49 million raised for the company |
| Offer for Sale (existing shares) | 88,239,000 shares (10.0%) by Datuk KC Lim and Vinson Lim |
| EPS FYE 2025 (enlarged share capital) | 5.85 sen |
| PE at IPO Price | Approximately 6.0 times |
| Pro Forma NA per Share After IPO | RM0.34 |
| Principal Adviser, Sponsor, Underwriter & Placement Agent | M & A Securities Sdn Bhd |
| Financial Adviser | Eco Asia Capital Advisory Sdn Bhd |
| Issuing House | Vistra Investor & Issuing House Services Sdn Bhd |
KEB's Shariah-compliant status is stated in the prospectus and remains valid until the next review by the Shariah Advisory Council, which is updated every May and November. The official list can be checked on the Securities Commission Malaysia website.
View the IPO data for KEB on one concise page, including financial charts, share allocation and shareholders.
Key Application Dates
| Event | Date |
|---|---|
| Application opens | 23 October 2026, 10.00 a.m. |
| Application closes | 2 November 2026, 5.00 p.m. |
| Balloting | 4 November 2026 |
| Allotment of shares to successful applicants | 12 November 2026 |
| Listing date | 16 November 2026 |
Late applications are not accepted. The application process is handled by Vistra Investor & Issuing House Services (formerly Tricor Investor & Issuing House), and you can apply through internet banking or your broker's platform. If this is your first time applying, follow the steps in the article cara mohon IPO Bursa guna MPlus Global. The full prospectus can be downloaded from the Bursa Malaysia IPO page.
IPO Share Allocation: Who Gets How Much?
Of the 226.77 million shares on offer, the allocation is as follows:
- Malaysian public (via balloting): 44.12 million shares (5.0% of the enlarged share capital), split equally between Bumiputera investors and the general public, 22.06 million shares each
- Eligible Persons (Pink Form): 22.06 million shares (2.5%) for directors, employees and business associates who contributed to the group
- Private placement to MITI-approved Bumiputera investors: 22.06 million new shares (2.5%) plus 88.24 million Offer for Sale shares (10.0%)
- Private placement to selected investors: 50.30 million shares (5.7%)
For retail investors, only 44.12 million shares are available through public balloting, which is a small portion relative to the size of the company. The public and Pink Form portions (66.18 million shares) are fully underwritten by M&A Securities, while the placement portions are handled by the placement agent. Bumiputera investors can also consider the MITI quota. The guide is in cara mohon IPO MITI untuk Bumiputra.
Financial Performance: A Big Jump in FYE 2025
KEB's financial year ends on 31 December. Here is a summary of performance from the accountant's report in the prospectus (RM million):
| Period | Revenue | Gross Profit | Net Profit (PAT) | Net Margin |
|---|---|---|---|---|
| FYE 2022 | 214.8 | 57.8 | 28.9 | 13.4% |
| FYE 2023 | 183.3 | 64.2 | 33.1 | 18.0% |
| FYE 2024 | 187.5 | 61.9 | 33.4 | 17.8% |
| FYE 2025 | 359.3 | 107.5 | 51.6 | 14.4% |
| FPE 2025 (4 months, Jan-Apr) | 84.0 | 30.9 | 17.1 | 20.4% |
| FPE 2026 (4 months, Jan-Apr) | 88.0 | 29.6 | 14.1 | 16.0% |
Revenue nearly doubled in FYE 2025 (up 91.7%) and net profit jumped 54.4% to RM51.6 million. The driver was almost entirely one project: Residensi Cove in Melaka contributed 86.4% of FYE 2025 revenue. Property developers in Malaysia recognise revenue based on the percentage of construction completed, so when a large project is in its peak construction phase, revenue surges.
On the other hand, for the first 4 months of 2026, revenue rose slightly (4.8%) but net profit fell 17.9% compared with the same period last year because the gross margin narrowed. This is an early sign that Residensi Cove's contribution is flattening as the project nears completion.
PE Calculation: Is RM0.35 Cheap?
Based on FYE 2025 net profit of RM51.61 million and 882.39 million shares after the IPO, EPS is 5.85 sen. At RM0.35, the PE is approximately 6.0 times. Pro forma net asset (NA) value per share after the IPO is RM0.34, so the IPO price is only about 1.03 times book value.
This is a low valuation compared with most ACE Market IPOs, which are typically priced at teens PE multiples. But context matters: property developer stocks on Bursa are often traded at single-digit PE and below book value, because their earnings are cyclical and depend on new project launches. So a PE of 6 times is better read as "property sector pricing", not necessarily a big discount.
One more thing to keep in mind: the 6 times PE is calculated on peak-year FYE 2025 profit. If 2026 and 2027 profits are lower because Residensi Cove is nearly fully recognised, the actual forward PE could be higher.
Use of IPO Proceeds: RM48.49 Million
Only the Public Issue proceeds (RM48.49 million) go to the company. The Offer for Sale proceeds (RM30.88 million) go to the selling shareholders, Datuk KC Lim and Vinson Lim.
| Use | Amount | % | Timeframe |
|---|---|---|---|
| Acquisition of new land bank | RM19.00 million | 39.2% | 24 months |
| Working capital for the Residensi Jentayu project | RM14.89 million | 30.7% | 12 months |
| Repayment of bank borrowings | RM8.50 million | 17.5% | 6 months |
| Estimated listing expenses | RM6.10 million | 12.6% | 3 months |
The largest allocation is for buying new land in the Klang Valley, Negeri Sembilan and Melaka, but the prospectus states that no specific land has been identified. The RM8.5 million loan repayment is expected to save around RM0.45 million in interest per year.
Key Risks to Consider
1. Reliance on a single project
Residensi Cove contributed 86.4% of FYE 2025 revenue and 72.2% of FPE 2026 revenue. The project is already 96.5% complete, so further revenue growth depends on the successful launch of Embun Palma and Jentayu, neither of which has been launched. According to the prospectus, Jentayu's development cost is estimated at RM394.93 million against a GDV of RM429.42 million, which is a thin margin.
2. Weak operating cash flow
Paper profit is not the same as cash. In FYE 2025, operating cash flow was only RM14.3 million against net profit of RM51.6 million, and in FPE 2026 operating cash flow was negative RM25.0 million. This is common for a developer that is buying land and building, but it means the company relies more on borrowings. As at 30 April 2026, borrowings totalled RM109.35 million with a gearing ratio of 0.41 times.
3. Reliance on a single contractor
Taghill Projects Sdn Bhd, the main contractor for Residensi Cove, accounted for 42.9% of the group's purchases in FYE 2025. The prospectus also discloses that an independent director of Taghill's holding company is also the chairman of KEB's audit committee. It is disclosed openly, but worth noting.
Other risks to consider
- Founders selling shares - 88.24 million existing shares are sold in the IPO. Vinson Lim is selling about 28% of his holding.
- Pre-IPO dividend - RM18.0 million was declared for FYE 2025 before the listing.
- Limited moratorium - only Datuk KC Lim and Vinson Lim (67.6%) are subject to the moratorium. Other early shareholders (about 6.9%) are free to sell from day one.
- Bumiputera quota - the Residensi Bukit Idaman project did not meet its Bumiputera unit quota, with a potential penalty of around RM4.5 million covered by an indemnity from Datuk KC Lim.
- Property cycle - the overhang of unsold homes in Selangor rose to 3,547 units in 2025 according to the independent market research in the prospectus, based on NAPIC data. Demand is also sensitive to interest rates; the Bank Negara Malaysia OPR is currently 2.75%.
Strengths and Catalysts
- Low valuation - PE of around 6 times and a price close to NA per share.
- Track record of 14 completed projects - more than 3,000 units and a GDV of RM1.35 billion since 2008, with an in-house CIDB G7 contractor.
- RM1.74 billion project pipeline - about 5.6 times market cap, focused on the affordable and mid-range segments that are most actively transacted. According to the market research in the prospectus, 52.3% of home transactions in 2025 were priced at RM300,000 and below. This issue is discussed further in the article why affordable homes don't sell.
- First-time homebuyer incentives - Budget 2027 maintains the stamp duty exemption for first homes up to RM500,000 as well as the SJKP guarantee.
- Dividend policy - targets a payout of 30% to 50% of net profit each financial year, subject to cash requirements.
- Shariah compliant - eligible for Muslim investors' portfolios. The difference is explained in Shariah vs conventional investment.
Full details including the independent market research (IMR), land bank list, shareholding structure and our valuation are in the Gold report. Read the full prospectus analysis.
IPO Review and IPO Financing
Still deciding whether to apply? We will hold a free online KEB IPO review session on Friday, 30 October 2026, at 3:30pm, before applications close on Monday, 2 November. A Remisier will walk through the prospectus, valuation and application strategy. Join the IPO Review with a Remisier.
If you want to apply for a larger quantity, IPO financing is available for KEB (0481). Apply for 5x/10x IPO Financing. Remember that financing magnifies both potential gains and potential losses, so understand the risks first in the article share margin and IPO financing.
Frequently Asked Questions (FAQ)
What is the KEB Berhad IPO price?
The KEB Berhad IPO price is RM0.35 per share, giving a market cap of RM308.83 million based on 882,385,700 shares after the IPO.
Is KEB shares Shariah compliant?
Yes. The prospectus states KEB shares are classified as Shariah compliant by the Securities Commission's Shariah Advisory Council.
When does the KEB IPO application close?
Applications open at 10.00 a.m. on 23 October 2026 and close at 5.00 p.m. on 2 November 2026. Balloting takes place on 4 November 2026.
When will KEB list on Bursa Malaysia?
KEB is scheduled to list on the ACE Market on 16 November 2026 under the stock name KEB and code 0481.
What is the KEB IPO PE ratio?
Based on FYE 2025 EPS of 5.85 sen on the enlarged share capital, the PE at the IPO price is approximately 6.0 times.
What does KEB Berhad do?
KEB is a property developer building landed and high-rise residential homes, factories, shops and mixed-use projects in the Klang Valley, Negeri Sembilan and Melaka, with a focus on the affordable to mid-range segment.
Who are KEB's major shareholders after the IPO?
Datuk KC Lim will hold 52.2% and his son Vinson Lim 15.4%. Both are subject to a 6-month moratorium on their entire shareholding after the listing.
How do I check my IPO ballot result?
After balloting on 4 November 2026, you can check your application status through the issuing house or your broker. See our guide on checking your IPO application status.
Conclusion
The KEB IPO offers a Shariah-compliant property developer at a PE of around 6 times and close to book value, with a track record of 14 completed projects and a RM1.74 billion project pipeline. The main risk is the transition from the nearly completed Residensi Cove to new projects that have not yet been launched, along with weak operating cash flow, so size your position according to your risk appetite.
Before applying for this or any upcoming IPO, make sure you have an active CDS account.
Open a CDS trading account to invest in Bursa Malaysia as well as foreign stocks such as US and Hong Kong shares.
Download the free Stock Market Basics Ebook to understand the fundamentals before you invest.
Further Reading
- What Is an IPO or Public Offering of Shares?
- How to Apply for a Bursa IPO Using MPlus Global
- Cornerstone Investors & Lock-Up Periods: Why IPO Shares Can Crash 6 Months After Listing
- SKA Capital Berhad IPO (SKACAP 0480): Substation Contractor Heads to ACE Market
- Why Don't Affordable Homes Sell While House Prices Keep Rising?