KUALA LUMPUR, 23 September 2025 — Cheeding Holdings Bhd, a utilities engineering services firm, may be worth more than twice its initial public offering (IPO) price, according to two brokerage houses ahead of its debut on Malaysia’s ACE Market.
Apex Securities, in initiating coverage on Cheeding, issued a ‘buy’ rating, pointing out that the company is one of the rare contractors qualified for high-voltage works. Cheeding is licensed to work up to the highest voltage class in Malaysia, giving it a strong competitive position amid the nation’s expanding electricity grid and the broader ASEAN Power Grid initiative. The IPO is priced at 36 sen per share, but lenders believe its fair value could be around 73 sen — implying potential upside of about 103%.
Cheeding specialises in building electric transmission towers, maintenance of both overhead and underground infrastructure, substation engineering, and related services. Public Investment Bank noted that Tenaga Nasional Bhd (TNB), a major client, has approval to spend nearly RM43 billion to accelerate Malaysia’s energy transition. The expected rise in capital expenditure on electrical grids, together with growing momentum for regional interconnection under the ASEAN Power Grid, provides tailwinds for Cheeding’s business.
Financially, Cheeding has consistently reported healthy net margins of 22%-23%, according to Public Investment Bank, bolstered by its lean cost structure and focus on overhead infrastructure projects. That compares favorably to peers in underground or substation work whose margins are nearer 12%. The company is also in a net cash position, which reduces financing risk and enhances profit retention.
With its IPO application closing today and listing scheduled for 7 October, Cheeding is positioning itself as a pure plays exposure to Malaysia’s grid expansion. Investors will be eyeing not just the listing, but how the company executes major grid contracts and manages cost and supply chain pressures.
