EGH International Berhad
ECOGRP0472BallotedBerjaya Securities Sdn Bhd · ACE Market · Listing 16 Oct 2026
Auto Summary
Revenue
PAT
Margins & Gearing
Utilisation Of Proceeds
Valuation Breakdown
Category Scores
Growth Vs Risk Matrix
Growth increases upward and risk decreases to the right, so the most attractive IPOs sit in the top-right quadrant.
EGH International is a capable fit-out contractor with an improving margin record — gross margin up from 9% in FYE2023 to 20% in FYE2026 — and a RM313.5m order book that covers well over a year of revenue. The IPO, however, is primarily a balance-sheet repair. Gearing stood at 2.66 times, part of it in licensed-moneylender loans; 37.5% of the company's proceeds repays debt, a third more is working capital, and only RM5m funds expansion. A third of the offer is an Offer for Sale. At 14.68 times FYE2026 earnings the shares are priced for continued margin progress, which TA Research expects — its RM0.22 fair value assumes FYE2027 core profit of RM16m, 47% above FYE2026. The shares are not Shariah-compliant, which narrows the investor base. Balloting is on 7 October and listing on 16 October 2026.
Strengths
- Gross margin widened from 14.6% to 20.0% over the window and PAT nearly tripled. - RM313.5m of unbilled orders across 18 ongoing projects, about 1.7 times FYE2026 revenue. - A 15-year record of more than 200 projects, including 57 hotels and resorts. - Coverage across fit-out, design coordination, manufacturing, M&E and FF&E procurement.
Weaknesses
- Gearing of 2.66 times at FYE2026 (down from 9.59 times in FYE2024), including moneylender borrowings. - Revenue is volatile: down 11.7% in FYE2025, up 19.4% in FYE2026. - Top five clients were 70%-81% of revenue. - Only 13% of the proceeds fund growth; 71% goes to debt and working capital. - Listing expenses take 15.63% of the proceeds.
Opportunities
- Hotel and healthcare build-outs in Malaysia. - The Puchong head office and Interior Premium Outlet showroom for retail and home renovation. - Interest savings of about RM0.8m a year from repaying moneylender loans.
Threats
- Cost overruns on fixed-price, lump-sum contracts. - FF&E and material price swings, particularly imports from China. - Hospitality capex is cyclical. - Refinancing risk while gearing stays high.
IPO Balloting Calculator
Tier snapping, subscription cost, and expected-value estimate.
| Units | Tier | Cost | Success | Open Profit | Open EV | Hold Profit | Hold EV |
|---|---|---|---|---|---|---|---|
| 100 | 1 | RM16 | - | RM3 | - | RM8 | - |
| 300 | 2 | RM48 | - | RM10 | - | RM24 | - |
| 1,100 | 3 | RM176 | - | RM35 | - | RM88 | - |
| 2,100 | 4 | RM336 | - | RM67 | - | RM168 | - |
| 3,100 | 5 | RM496 | - | RM99 | - | RM248 | - |
| 4,100 | 6 | RM656 | - | RM131 | - | RM328 | - |
| 6,100 | 7 | RM976 | - | RM195 | - | RM488 | - |
| 11,100 | 8 | RM1,776 | - | RM355 | - | RM888 | - |
| 20,100 | 9 | RM3,216 | - | RM643 | - | RM1,608 | - |
| 50,100 | 10 | RM8,016 | - | RM1,603 | - | RM4,008 | - |
| 100,100 | 11 | RM16,016 | - | RM3,203 | - | RM8,008 | - |
| 200,100 | 12 | RM32,016 | - | RM6,403 | - | RM16,008 | - |
| 500,100 | 13 | RM80,016 | - | RM16,003 | - | RM40,008 | - |
| 1,000,100 | 14 | RM160,016 | - | RM32,003 | - | RM80,008 | - |
| 2,000,100 | 15 | RM320,016 | - | RM64,003 | - | RM160,008 | - |
| 5,000,100 | 16 | RM800,016 | - | RM160,003 | - | RM400,008 | - |
| 10,000,100 | 17 | RM1,600,016 | - | RM320,003 | - | RM800,008 | - |
The trailing 100 units are intentional: applying just over a boundary, such as 20,100 instead of 20,000, lands in the next balloting tier. Success rate is a heuristic, not published balloting odds.
IPO Autopsy is for educational and research purposes only and is not investment advice, a recommendation, or an offer to subscribe for securities.