Low Keng Huat (Singapore) Limited (LKH), a veteran mainboard-listed construction and property development firm established in 1992, has plenty of projects, achievements and accolades under its belt.
The company is well known for being constructing People’s Park Complex, OCBC Centre, as well as for the restoration of Chijmes.
The company, however, is entering a pivotal phase with the launch of a voluntary conditional general offer for delisting, announced on November 28, 2025. The offer, executed through Consistent Record Pte Ltd — a special purpose vehicle controlled by managing director Marco Low Peng Kiat and his family — proposes to acquire all remaining shares at S$ 0.72 per share.
This price reflects a 17.1% premium over the last transacted price of S$0.615 on November 28, the final trading day before the announcement, and a substantial 45.2% premium to the volume-weighted average price over the preceding 24 months.
Shares reacted sharply, surging 17.1% or 10.5 cents to exactly S$0.72 by mid-morning on December 1, 2025, signalling immediate market acceptance of the terms.
So is this offer fair, and what should existing shareholders and speculators do?
Business model
While LKH counts itself as a company trying to diversify out of property, the majority of its business still lies in construction and property development.
It owns Carnivore, a Brazilian Churrascaria at Robertson Quay, its sole outlet.
But its bread and butter is still property development. And it is very evident when we look at its financials.
Financials
LKH’s top line has been marginally flattish over the last 10 years. Several years saw revenue spikes attributable to large-scale project completions and handovers, while leaner years showed declines as project pipelines slowed or shifted to new phases.
For example, fiscal years around 2017 to 2018 and 2022 to 2023 showed stronger revenue periods correlating with notable projects like The Tampines Trilliant and Klimt Cairnhill nearing completion. In contrast, recent reported figures for 1H FY2026 revealed an 85% decline in revenue compared to the previous period, due to completion of its flagship project and limited new launches impacting near-term top line growth.
Net profit experienced similar volatility. Earlier years included periods of profitability boosted by project profits and stable construction activity, but these gains were punctuated by losses or diminished profits during market slowdowns, rising construction costs, or project transitions. The 1H FY2026 net loss of S$10.2 million reflects the immediate impact of lower revenue and operating challenges amid ongoing macroeconomic and sector headwinds.
The company’s debt ballooned in 2020, likely due to financing aid required during COVID before tapering down. The company’s debt to equity ratio is also not too bad, spiking before eventually coming down as well.
The company does not show any signs of recklessness in taking debt.
Delisting offer and valuation
A delisting offer of S$0.72 per share can be viewed from multiple angles.
As LKH registered a loss in recent FY, using a P/E ratio wouldn’t give a clear indication.
Price to book wise, the latest delisting offer has seen share price rallying to a P/B of 0.91x. That is way above its mean of 0.56x, a valuation that it has been trading around since May’21.
The delisting offer looks relatively fair, given the fact that share prices have always lagged behind.
Anyone who has bought into the company’s shares in the past 10 years would now be offered an opportunity to exit at a profit.
As such, I personally think that the delisting offer is good and fair – a win-win for both retail investors and the owners.
Conclusion
Having gone through a few privatisation offer recently, LKH’s delisting offer stands out as a fair one.
However, that also means that there are limited upside for traders who might want to take advantage of the volatility.
This delisting offer however, paints a grey picture of what the Singapore equities market hold, especially for locally listed businesses.
With more companies delisting than IPO-ing, the number of companies available to the public shrinks with each passing year.
Fortunately, this concern is not mine to bear, and I’m just happy that the minority retail shareholders will at least get back their capital with even some gains, which is not a usual sight.
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