SBS Nexus Berhad IPO's Analysis
SBS Nexus Berhad
SBS Nexus Berhad is a branding and marketing solutions specialist based in Malaysia. Through its subsidiaries, the company provides offline branding solutions (including out-of-home media, public relations, event management, and offline publications) and digital branding solutions (including online marketing, digital broadcasts, video production, digital out-of-home media, and mobile/web application development). The group also organises business awards and networking events under its 'ShangHai' brand to generate business leads.
IPO Details
Market:
ACE
Principal Adviser:
M & A Securities Sdn Bhd
Issuing House:
Tricor Investor & Issuing House (TIIH)
Shariah Status:
SC (Yes)
Listing Price:
0.25
MITI allocation?:
Yes
Closing Date:
07-Jan-2026
Balloting Date:
09-Jan-2026
Listing Date:
20-Jan-2026
Oversubscription rate:
22.28x
Average Analysts FV
:
Mplus (0.34), Public Invest (0.27), TA (0.29), RHB (0.31)
iSaham IPO Score
:
Market Cap:
122.50 M
Number of Shares:
490.00 M
( info)
Median Sectors PE:
N/A
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Set-up of our new headquarters | 7,100 | 23.2 |
| Expansion | Business expansion | 7,250 | 23.7 |
| Working capital | Branding, marketing and promotional activities | 740 | 2.4 |
| Working capital | Working capital | 5,035 | 16.4 |
| Listing expenses | Estimated listing expenses | 4,500 | 14.7 |
| Debt | Repayment of borrowings | 6,000 | 19.6 |
| Total | 30,625 | 100 | |
Analyst Highlights
| Date | Analyst Highlights |
|---|---|
|
07-Jan-2026
RHB |
|
|
06-Jan-2026
TA |
|
|
05-Jan-2026
Public Invest |
|
|
05-Jan-2026
Mplus |
|
Utilisation of Proceeds
Business Segments
Geographical Segments
Major Customers
Revenue by Financial Year Ended
Profit After Tax (PAT) by Financial Year Ended
Revenue by Financial Period Ended
Profit After Tax (PAT) by Financial Period Ended
SWOT Analysis
Strengths
- High Profit Margins: Maintains superior PAT margins (21-25%) compared to traditional media peers like Star Media Group (low single digits), driven by its integrated solutions and premium 'ShangHai' branded events.
- Integrated Business Ecosystem: Synergy between offline, digital, and leads generation (awards/networking) allows for effective cross-selling to SMEs, creating a sticky ecosystem unlike pure-play advertising providers.
- Diversified Customer Base: No significant customer concentration risk, with the top customer contributing only 13.8% of revenue in FPE 2025, ensuring revenue stability.
Weaknesses
- No Long-Term Contracts: Revenue is project-based and transactional, providing less earnings visibility and stability compared to peers who may have long-term media buying contracts or recurring subscriptions.
- Reliance on Outsourcing: Heavy dependence on third-party suppliers for key functions like printing and event logistics, which compressed margins in FPE 2025 and poses operational risks.
Opportunities
- Malay Market Expansion: The plan to replicate its successful business club model for the Malay-speaking SME community under 'MyUsahawanMedia' opens up a significantly larger demographic and market segment.
- Margin Improvement: IPO proceeds allocated for a new headquarters with in-house production studios will reduce outsourcing costs, addressing a key weakness and potentially improving future profit margins.
Threats
- Economic Downturn Sensitivity: As a branding service provider, revenue is highly sensitive to SME advertising budgets, which are typically among the first to be cut during economic slowdowns.
- Brand Reputation Risk: The business model heavily leverages the 'ShangHai' brand equity for its high-margin events. Any negative perception or loss of prestige could severely impact business leads and profitability.
Key Highlights
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Conclusion
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