Background

Plytec Holding Bhd (PLYTEC) is principally involved in the provision of construction engineering solutions and services as well as trading and distribution of building materials.

IPO Statistic

The IPO entails a public issue of 106,060,600 new ordinary shares, and an offer for sale of 51,515,100 shares at an IPO price of RM0.35/share.

Public Issue:

• 30,303,100 new shares for application by the Malaysian public; and

• 75,757,500 new shares for private placement to Bumiputra investors approved by MITI.

Main Competitive Advantages

1. Capable to provide comprehensive construction engineering solutions and services;

2. Offer a Wide Range of Work Equipment and Products; and

3. Experienced Management Team.

Valuation

At an IPO price of RM0.35/share, PLYTEC is priced at a trailing PER of 15.2x FY22 core EPS. We value the company at 12x CY24 EPS, arriving at a fair value of RM0.355/share.

Source: TA Research - 31 Oct 2023