Background

TechStore Berhad (TechStore) is principally involved in providing enterprise IT services, primarily focusing on IT security and automation solutions for various industries, including transportation, utilities, hospitality, and logistics.

IPO Statistic

The IPO entails a public issue of 125,000,000 new ordinary shares, and an offer for sale of 25,000,000 shares at an IPO price of RM0.20/share.

Public issue:

• 25,000,000 new shares for application by the Malaysian public;

• 25,000,000 new shares for application by eligible parties;

• 12,500,000 new shares for private placement to selected investors; and

• 62,500,000 new shares for private placement to Bumiputra investors approved by MITI.

Main Competitive Advantages

1. Providing comprehensive IT security and automation solutions;

2. Having a diverse customer base; and

3. Experienced management team.

Valuation

At an IPO price of RM0.20/share, TechStore is priced at a trailing PER of 12.8x FY23 core EPS. We value the company at 16x CY26 EPS, arriving at a fair value of RM0.32/share.

Source: TA Research - 31 Jan 2025