Public Investment Bank Bhd has assigned a fair value of 70 sen on SKA Capital Bhd, which translates into a 63% premium over its initial public offering (IPO) price of 43 sen.

This fair value was calculated using a lower price-to-earnings multiplier of 16 times, compared with the industry standard of 20 times, reflecting the company’s smaller market capitalisation and its projected 2027 profits, the house said in a note on Monday

The house forecast SKA Capital’s earnings to grow at a three-year compound annual growth rate (CAGR) of 27%