GDB to raise RM43.8 million from upcoming IPO
KUCHING: Construction services firm GDB Holdings Bhd (GDB) plans to raise RM43.8 million from its initial public offering (IPO) to fund future expansion.
GDB focuses on the construction of high rise residential, commercial and mixed development projects.
Completed projects include One Central Park in Desa ParkCity, which was delivered 107 days ahead of the contractual completion date; as well as several sections under Parcel B of KL Eco City where the piling, basement, and podium contracts were delivered between 40 to 132 days ahead of contractual completion date, while the office tower was completed 67 days ahead of schedule.
As at February 6, 2018, GDB’s orderbook stood at RM855 million comprising projects such as Westside III in Desa ParkCity, Etiqa Office Tower along Jalan Bangsar, AIRA Residence in Damansara Heights, and Menara Hap Seng 3 within the Kuala Lumpur city center.
At the IPO prospectus launch yesterday, GDB managing director Cheah Ham Cheia said that the Group’s proposed listing on the ACE Market of Bursa Malaysia Securities Berhad aimed to elevate GDB’s profile, expand its current capacity, and extend its services into other building segments such as hospitals, schools, universities, hotels, convention centers and shopping malls.
“We are mindful of the tremendous opportunities in the Malaysian infrastructure sector, given the nation’s grand aspirations to become a first-world economy.
“Hence, we plan to expand into civil and infrastructure construction services, to complement our current strengths in the building sector,” Cheah said during its prospectus launch yesterday.
“In this respect, we have obtained in 2017 the Sijil Perolehan Kerja Kerajaan (SPKK) as a Grade G7 contractor, which allows us to participate in tenders for Government contracts; and are registered with the Construction Industry Development Board of Malaysia as a Grade G7 contractor that allows us to tender for projects with unlimited value.
“We hope to establish an infrastructure project team within 12 months from listing, to gain formidable entry into this segment.” Cheah said part of the proceeds from its IPO would be allocated to purchase new machinery and equipment, which will enhance the firm’s capacity to take on more projects simultaneously and achieve better time management in its projects.
Of the 125 million new shares, 12.5 million shares will be for application by the Malaysian public; and 15.0 million shares for application by eligible directors, employees and persons who have contributed to the success of the Group.
25.6 million shares will be allocated for private placement to identified investors; and 71.9 million shares for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry.
There would also be an offer for sale where 37.5 million existing shares will be allocated for private placement to identified investors.
Of the total IPO proceeds to be raised, RM8.7 million would be utilized for the purchase of new machinery and equipment, consisting of four tower cranes, four passenger hoists, and two concrete placing booms; while RM15.6 million would be for working capital.
Additionally, RM8.0 million would be allocated for land purchase for storage of equipment and machinery, while another RM8.0 million would be slated for the purchase of a new office building to serve as Group headquarters.
The remaining RM3.5 million will be applied towards defraying of listing expenses.
With the prospectus launch, applications for GDB’s IPO is now and will close on Monday, March 12, 2018 at 5pm Barring unforeseen circumstances, GDB targets to list on the ACE Market of Bursa Malaysia on March 27, 2018.
Alliance Investment Bank Berhad is the principal adviser, sponsor, sole underwriter, and placement agent for the IPO exercise.
Source: Borneo Post Online