Background

Vetece Holdings Berhad (VETECE) is an enterprise IT solutions provider that offers a wide range of services, which include implementation services, maintenance, support, and professional services, as well as the resale of hardware and software.

IPO Statistic

The IPO entails a public issue of 98,000,000 new ordinary shares, and an offer for sale of 39,200,000 shares at an IPO price of RM0.25/share.

Public Issue:

• 19,600,000 new shares for application by the Malaysian public;

• 9,800,000 new shares for application by eligible parties; and

• 68,600,000 new shares for private placement to selected investors.

Main Competitive Advantages

1. Proven track record;

2. Having a strong network of technology partners and vendors; and

3. Experienced management team.

Valuation

At an IPO price of RM0.25/share, VETECE is priced at a trailing PER of 15.2x FY23 core EPS. We value the company at 18x CY25 EPS, arriving at a fair value of RM0.34/share.

Source: TA Research - 13 Aug 2024