PETALING JAYA: The initial public offering (IPO) of construction and facilities management services provider Gagasan Nadi Cergas Bhd available for public subscription has been oversubscribed by 20.2 times.
The group said in a statement that it received a total of 6,029 applications for 423.5 million shares worth a total of RM127 million for its public tranche of 20 million shares that were made available for application by the Malaysian public under its IPO scheme.
The group, which is slated to be listed on Bursa Malaysia’s ACE Market on Jan 8, 2019, expects to raise RM42 million proceeds from the public issue, mainly to be used for working capital.
Its managing director Wan Azman Wan Kamal said the oversubscription of the public tranche, together with strong response from investors for the private placement portion, signifies the confidence of the investing community in its business viability and ability to grow in the future.
The IPO entails a public issue of 140 million new shares and offer for sale of 60 million existing shares at 30 sen per share, representing 26.6% of the group’s enlarged share capital.
The total proceeds from the offer for sale of RM18 million will accrue entirely to the offerors.
Going forward, Wan Azman said the group intends to continue its strategic direction to expand recurring income from long-term contracts through its utilities segment.
As at Nov 15, 2018, the group’s construction order book stood over RM600 million.
The group has established a dividend policy of distributing up to 30% of net profit as dividends, from the financial year ending Dec 31, 2019 onwards.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
Source: The Sun Daily