SKA Capital Berhad IPO (SKACAP 0480): Power Substation Contractor Heads to ACE Market
SKA Capital Berhad opened its IPO for applications on 20 October 2026 at RM0.43 per share, and will list on the ACE Market of Bursa Malaysia on 11 November 2026 under the stock name SKACAP (code 0480). It is not a household name among retail investors, but its work is everywhere: the electrical substations and underground cables that carry power to homes, factories and data centres across Peninsular Malaysia.
This article summarises what you need to know before applying, based on the company's official prospectus (not news estimates): the offer details, financial performance, the PE calculation, use of proceeds, and the key risk many investors overlook, which is the company's very heavy reliance on a handful of customers.
Who Is SKA Capital Berhad?
SKA Capital Berhad is an investment holding company incorporated on 6 November 2025 and converted into a public company on 25 February 2026 for the listing. The actual business runs through its subsidiaries SKA Rekabina (wholly owned) and Reltency Engineering (70%), with roughly 17 years of experience in power infrastructure engineering.
The group is led by Managing Director and Promoter Dato' Subas Kumar A/L Ambairam, who has more than 25 years of experience in construction. After the IPO he will hold 65.84% of the company, while the second substantial shareholder, Mohammed Afique Abdullah, will hold 7.31%.
Three Business Segments
- Substation engineering - EPCC (engineering, procurement, construction and commissioning), civil and structural works, plus electrical and mechanical works for substations. This is the backbone of the business, contributing 89.62% of FYE 2025 revenue.
- Underground utilities engineering - underground cable installation using open trenching and HDD (horizontal directional drilling). This segment only started in FYE 2025 (3.94%) but jumped to 21.53% of revenue in the 5 months to 31 May 2026.
- Trading of electrical devices, equipment and construction materials - a small and shrinking share (6.44% in FYE 2025, 2.82% in FPE 2026).
In terms of credentials, SKA is registered with CIDB as a Grade G7 contractor (able to tender for projects of unlimited value), registered as a supplier and service contractor with Tenaga Nasional Berhad (TNB), and holds a Class A Electrical Contractor licence from the Energy Commission. Together, these registrations form a meaningful barrier to entry in this sector.
SKA Capital IPO Details
| Item | Details |
|---|---|
| Company | SKA Capital Berhad |
| Stock Name / Code | SKACAP / 0480 |
| Market | ACE Market, Bursa Malaysia |
| IPO Price | RM0.43 per share |
| Shariah Status | Shariah compliant (classified by the SC's Shariah Advisory Council) |
| Shares After IPO | 895,500,000 shares |
| Market Cap at IPO Price | RM385.065 million |
| Public Issue (new shares) | 168,075,500 shares (18.77%) - raising RM72.27 million |
| Offer for Sale (existing shares) | 72,400,000 shares (8.08%) by Dato' Subas |
| FYE 2025 EPS (enlarged capital) | 3.23 sen |
| PE at IPO Price | 13.31 times |
| Pro Forma NA per Share After IPO | RM0.13 |
| Principal Adviser, Sponsor & Underwriter | TA Securities Holdings Berhad |
| Issuing House | Malaysian Issuing House Sdn Bhd |
SKACAP's Shariah-compliant status is stated in the prospectus and remains valid until the next periodic review by the Shariah Advisory Council. You can check the official list on the Securities Commission Malaysia website after the company lists.
View the IPO data for SKA Capital on one page, including the share allocation and key dates.
Key Application Dates
| Event | Date |
|---|---|
| Application opens | 20 October 2026, 10.00 a.m. |
| Application closes | 27 October 2026, 5.00 p.m. |
| Balloting | 29 October 2026 |
| Allotment to successful applicants | 5 November 2026 |
| Listing date | 11 November 2026 |
Late applications will not be accepted. Applications are handled by Malaysian Issuing House, and you can apply through internet banking or your broker's platform. If you are new to IPOs, start with what an IPO is in Malaysia.
IPO Share Allocation: Who Gets What?
Of the 240.48 million shares on offer, the allocation is as follows:
- Malaysian public (via balloting): 44.78 million shares (5.00% of enlarged capital), split equally between Bumiputera and non-Bumiputera at 22.39 million shares each
- Eligible Persons (Pink Form): 8.96 million shares (1.00%) for directors, employees and persons who contributed to the group
- Private placement to Bumiputera investors approved by MITI: 111.94 million shares (12.50%)
- Private placement to selected investors: 74.81 million shares (8.35%), including the 72.4 million Offer for Sale shares
For retail investors, only 44.78 million shares are available through the public ballot. Given the relatively small market cap and the popular power infrastructure theme, a heavy oversubscription is quite likely. Bumiputera investors may also consider the MITI quota.
Financial Performance: Rapid Growth in 3 Years
The figures below come straight from the financial highlights in the prospectus (Section 3.9). The financial year ends on 31 December, and FPE 2026 is the 5-month period ended 31 May 2026.
| Metric (RM million) | FYE 2023 | FYE 2024 | FYE 2025 | FPE 2026 (5 months) |
|---|---|---|---|---|
| Revenue | 44.44 | 151.80 | 241.36 | 119.16 |
| Gross profit | 11.27 | 29.47 | 44.04 | 28.91 |
| Profit before tax | 1.30 | 22.07 | 39.25 | 20.46 |
| Net profit attributable to owners | 0.56 | 16.29 | 28.94 | 13.52 |
| Gross margin | 25.36% | 19.41% | 18.25% | 24.26% |
| Net margin | 1.64% | 10.92% | 12.76% | 12.30% |
| EPS (sen) | 0.06 | 1.82 | 3.23 | 1.51 |
| Operating cash flow | 5.46 | (16.42) | 6.73 | 9.19 |
SKA's revenue grew more than fivefold in two years, from RM44.44 million (FYE 2023) to RM241.36 million (FYE 2025). Net profit rose from almost nothing to RM28.94 million. Gross margin dipped as the company took on bigger projects, but recovered to 24.26% in FPE 2026, partly thanks to the new underground cable segment.
One thing worth watching is operating cash flow. In FYE 2024 the company recorded negative operating cash flow of RM16.42 million despite a net profit of RM16.29 million. This is common for fast-growing contractors, because project costs must be paid before customers certify bills. It also explains why nearly 75% of the IPO proceeds go to working capital and performance bonds.
PE Calculation: Is RM0.43 Expensive?
The prospectus (Section 4.6, page 28) states the IPO is priced at a PE of approximately 13.31 times, based on audited FYE 2025 EPS of 3.23 sen. That EPS is calculated from RM28.94 million of profit from continuing operations attributable to owners, divided by the 895.5 million shares in issue after the IPO.
The simple maths: RM0.43 / RM0.0323 = 13.3 times. In other words, at the IPO price you are paying about 13 years of the company's FYE 2025 earnings.
As an additional reference, annualising FPE 2026 EPS (1.51 sen for 5 months) gives roughly 3.62 sen, implying a PE of around 11.9 times. Treat this only as an illustration, since a contractor's earnings follow project schedules and are rarely even across the year.
On an asset basis, pro forma NA per share after the IPO is only RM0.13, so new investors pay a large premium to book value, with dilution of 69.77% of the IPO price. That is normal for an engineering firm whose value lies in capabilities and contracts rather than heavy physical assets. A better yardstick is PE and the company's ability to convert its order book into profit.
For comparison within a similar space, see our coverage of the SLGC Berhad IPO (a G7 contractor) and the Pioneer Heat Holdings IPO (piping engineering), both ACE Market listings this year.
RM313.37 Million Order Book
As at 21 September 2026, SKA had an unbilled order book of RM313.37 million, expected to be recognised over the next two financial years. That is about 1.3 times FYE 2025 revenue, giving reasonable earnings visibility for the near term.
Interestingly, the order book mix has shifted. Contracts from Transgrid Group make up only RM30.29 million (9.67%) and direct TNB contracts RM19.27 million (6.15%). So most of the current order book comes from other customers, an early sign the company is trying to reduce its reliance on a single key customer.
Use of IPO Proceeds (RM72.27 Million)
| Purpose | RM million | % | Timeframe |
|---|---|---|---|
| Working capital | 32.72 | 45.28% | 24 months |
| Performance bonds for future projects | 21.00 | 29.06% | 36 months |
| Purchase of machinery and equipment | 12.05 | 16.67% | 24 months |
| Estimated listing expenses | 6.50 | 8.99% | 3 months |
The RM21 million set aside for performance bonds shows the company wants to bid for larger projects, since utility customers usually require a bond before awarding a contract. The RM12.05 million for machinery is to scale up the underground cable segment (open trenching and HDD). Note that the 72.4 million Offer for Sale shares (about RM31.13 million) go to Dato' Subas as the seller, not to the company.
According to The Star, TA Securities will underwrite 53.73 million new shares allocated to the public and Eligible Persons. Business Today also reported that the proceeds will strengthen the group's financial position to take on larger projects.
Key Risk: Dependence on Transgrid and TNB
This is the number one risk the company lists in its own prospectus, and investors must understand it:
- Transgrid Group contributed 63.84%, 96.59%, 54.07% and 39.10% of revenue in FYE 2023, FYE 2024, FYE 2025 and FPE 2026. In FYE 2024, almost all revenue came from one customer group.
- TNB contributed 17.81% of FYE 2025 revenue and 12.95% of FPE 2026 revenue.
- Major customers combined made up 99.93%, 99.96%, 98.69% and 96.24% of revenue over the same periods.
Reliance on Transgrid is clearly falling (from 96.59% to 39.10%), but the customer base is still very narrow. If one or two key customers slow down contract awards, the hit to revenue could be significant.
Other risks to consider
- Liquidated damages (LAD) and project delays - late completion can trigger LAD claims and delay revenue recognition.
- Cost overruns - fixed-price contracts mean higher material or labour costs are absorbed by the company.
- Key-person dependence - Dato' Subas holds 65.84% and drives group strategy.
- Order book replenishment - the business is project-based and tenders are competitive, so past performance does not guarantee future results.
- Working capital tightness - current liabilities of RM207.37 million versus current assets of RM244.73 million as at 31 May 2026, typical for a contractor but worth monitoring.
Major shareholders are also subject to a moratorium. To understand why IPO share prices sometimes come under pressure when lock-ups expire, read IPO lock-up periods and cornerstone investors.
Strengths and Catalysts
- Grid infrastructure theme - national grid investment, data centres and the energy transition all need more substations and cables, which is SKA's core business.
- Full set of licences - CIDB G7, TNB-registered contractor and Energy Commission Class A.
- Growing underground cable segment - from zero to 21.53% of revenue in under two years.
- Dividend policy - a target payout of at least 30% of net profit attributable to owners each financial year, subject to cash requirements.
- Shariah compliant - eligible for Muslim investors' portfolios and Islamic unit trust funds. For more on the difference, see Shariah vs conventional investment.
The full breakdown, including the independent market research (IMR), group structure, project list and our valuation view, is in the Gold report. Read the full prospectus analysis.
IPO Review Session and IPO Financing
Still undecided? We are running a free online SKA Capital IPO review on Monday, 26 October 2026, at 4:00 p.m., the day before applications close. 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 SKACAP (0480). Apply for 5x/10x IPO Financing. Remember that financing magnifies both potential gains and potential losses, so make sure you understand the risks first.
Frequently Asked Questions (FAQ)
What is the SKA Capital Berhad IPO price?
The SKA Capital Berhad IPO price is RM0.43 per share, giving a market cap of RM385.065 million based on 895.5 million shares after the IPO.
Is SKA Capital (SKACAP) Shariah compliant?
Yes. The prospectus states SKA Capital shares are classified as Shariah compliant by the Securities Commission's Shariah Advisory Council.
When does the SKA Capital IPO application close?
Applications open at 10.00 a.m. on 20 October 2026 and close at 5.00 p.m. on 27 October 2026. Balloting takes place on 29 October 2026.
When will SKA Capital list on Bursa Malaysia?
SKA Capital is scheduled to list on the ACE Market on 11 November 2026 under the stock name SKACAP and code 0480.
What is the SKA Capital IPO PE ratio?
Based on audited FYE 2025 EPS of 3.23 sen on the enlarged share capital, the PE at the IPO price is approximately 13.31 times.
What does SKA Capital do?
SKA Capital provides power infrastructure engineering solutions, mainly substation EPCC, underground utility cable works, and trading of electrical equipment in Peninsular Malaysia.
Who are SKA Capital's main customers?
The main customers are Transgrid Group and TNB. Transgrid contributed 54.07% of FYE 2025 revenue while TNB contributed 17.81%.
How do I check my IPO ballot result?
After balloting on 29 October 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 SKA Capital IPO offers exposure to the electricity grid infrastructure theme at a PE of 13.31 times, backed by rapid revenue growth, a RM313.37 million order book and Shariah-compliant status. Its biggest risk is a very narrow customer base, mainly Transgrid Group and TNB, so size your position according to your risk appetite.
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