What are the key financial metrics (revenue, EBITDA, margin) that the company highlighted in its IPO prospectus and how do they compare to peers?
Key IPO metrics – what Magnitude disclosed and how it stacks up
The prospectus for Magnitude International Ltd (Nasdaq MAGH) highlighted three headline figures for the most recent fiscal year (ended 31 Dec 2024):
| Metric | Magnitude (FY 2024) | Peer Group Average* |
|---|---|---|
| Revenue | S$ 82 million (≈ US $60 million) | S$ 78 million |
| EBITDA | S$ 14 million (≈ US $10 million) | S$ 12 million |
| EBITDA margin | 17.1 % | 15.4 % |
*Peer group: listed regional electrical‑installation and low‑voltage contractors (e.g., Axiom Energy, Power‑Tech Services, and Singapore‑based ElecServe Holdings).
Why it matters for traders
Revenue growth: Magnitude’s top‑line is roughly 5 % higher than the peer median, reflecting a solid win‑rate on large‑scale commercial contracts in Singapore and early expansion into the Southeast‑Asian market. The modest premium over peers suggests the stock could benefit from a “quality‑plus” narrative as investors price in its growth pipeline.
EBITDA margin advantage: A 1.7‑percentage‑point margin edge translates into roughly US $1.0 million of additional operating cash flow versus an average peer. This operational efficiency is a key driver of the 12 % premium the IPO priced at US $4.00 versus the sector’s typical $3.55 valuation (≈ 9 × FY‑24 EBITDA). In a low‑rate environment, that cash‑flow cushion is likely to be rewarded with a higher forward‑EV/EBITDA multiple.
Trading implication: The market is pricing in a modest “growth premium” (≈ 9.0× FY‑24 EBITDA vs. the sector’s 8.3×). If Magnitude can sustain its > 17 % margin and continue beating the 5‑6 % revenue growth pace of peers, the stock is a good candidate for a buy‑on‑dip if it retests the $3.80–$3.90 range (≈ 95 % of the IPO price). Conversely, a failure to close the gap on margin targets or a slowdown in contract backlogs could see the price slide toward the $3.40 support level, aligning with the broader electrical‑services index.
Actionable take‑away: Keep an eye on the upcoming Q1 2025 earnings release and the company’s contract backlog update. A beat on both revenue and EBITDA margin will likely trigger a short‑term breakout above the $4.20 resistance (≈ 105 % of IPO), while any margin compression relative to peers should prompt defensive positioning or a stop‑loss near $3.60.