Jati Tinggi Group Bhd Values at 35 Sen by PublicInvest for Upcoming ACE Market Listing

KUALA LUMPUR (Dec 6): PublicInvest Research has assessed the valuation of Jati Tinggi Group Bhd, which is set to be listed on the ACE Market, at 35 sen. This valuation is based on a 14 times price-earnings multiple applied to its forecasted earnings per share of 2.5 sen for the financial year ending Nov 30, 2024 (FY2024).

In a statement released on Wednesday, the research house highlighted that the growth of this provider of underground and overhead utilities engineering services and solutions will be fueled by two main factors which is the establishment of its presence as a primary contractor its geographical expansion into Sabah and Sarawak.

Jati Tinggi's initial public offering (IPO) is anticipated to generate approximately RM18 million through the issuance of 66.8 million new shares. In addition to utilizing 38.8% of the proceeds for the repayment of bank borrowings and allocating 40.7% for general working capital, 1.1% of the proceeds will be earmarked for capital expenditure.

PublicInvest highlighted Jati Tinggi's competitive strengths, which include a proven track record, the enhancement of project management and delivery through technology tools, an experienced senior management team and a technically competent project team.

The research house identified a few key drivers for Jati Tinggi, such as increasing demand for electricity due to economic growth, population growth, and urbanization, government initiatives to enhance accessibility to utilities, opportunities arising from Malaysia's push for higher adoption of renewable energy, and foreign and domestic investments.

Jati Tinggi is tentatively scheduled to be listed on Bursa Malaysia on December 20.