ACE Market-bound Gagasan Nadi Cergas unperturbed by negative sentiment

: Construction player Gagasan Nadi Cergas Bhd, which is en route for listing on the ACE market on Jan 8, 2019, is unperturbed by the weak sentiment in the construction space as it sees positive growth prospects with its strong order book.

The group, which aims to raise RM42 million from its initial public offering (IPO) exercise, has a total order book of over RM600 million as at Nov 15, 2018 and will sustain until 2021.

“I believe that we will be able to secure more jobs in the coming future. In terms of (the group’s) earnings, we have a steady recurring income coming from our concession (projects),” said group managing director Wan Azman Wan Kamal at the prospectus launch today.

Meanwhile, Holdings Bhd’s head of corporate finance Ku Mun Fong believes there is still demand for good fundamental stocks like Gagasan Nadi Cergas.

“The group will only be listed in next year. Hopefully the investors will be able to consider good fundamental stocks like Gagasan Nadi Cergas ,” Ku added.

The group’s IPO entails a public issue of 140 million new shares and an offer for sale of 60 million existing shares at 30 sen per share.

Out of the 140 million new shares, 20 million shares will be for application by the Malaysian public and 20 million shares for eligible directors and employees. The remaining 100 million shares are allocated for private placement to identified investors.

Of the total proceeds raised, RM14 million will be allocated for funding of Asean Football Federation (AFF) mixed development; RM6.5 million for capital expenditure under Datum Jelatek development; and RM16.5 million for working capital.

Source: The Sun Daily

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