KUALA LUMPUR (Nov 13): Citaglobal Bhd (KL: CITAGLB) has secured a RM628 million contract from Jabatan Bekalan Air Malaysia (JBA) for a raw water and flood control project in Selangor.
The contract value is almost double the group's market capitalization, which currently stands at RM349 million.
The contract will further increase its order book to approximately RM1.7 billion based on the group's outstanding order book of RM1.1 billion as of June 2025.
In a stock exchange filing on Thursday, Citaglobal said its wholly-owned subsidiary Citaglobal Land Sdn Bhd (CLSB) has accepted the acceptance letter for the contract, appointing CLSB as the contractor for the project.
In March 2025, JBA issued a tender for the “Dual-Function Pond for Raw Water Source and Flood Mitigation Package A” project, and CLSB submitted its bid in July 2025.
The 48-month design-and-build project includes the construction of a weir and a raw water pumping station in Sungai Klang, the installation of raw water pipes from the raw water pumping station in Sungai Klang to Sungai Air Hitam and the upgrading of 10 existing ponds into retention and sedimentation systems.
It also includes the construction of the lateral spillway and stilling basin near the Sungai Air Hitam-Sungai Klang confluence and associated mechanical and electrical works, including instrumentation and control system works and infrastructure works
The position is expected to have a positive impact on the Group's profits, earnings per share and net assets over the term of the agreement.
The project aims to create a dual-function pond used for flood control and as a raw water resource to support Selangor's water supply security and increase the state's reserve margin to over 15%.
At lunch break on Thursday, Citaglobal's share price was unchanged at 82 sen, giving the group a market capitalization of RM349 million.