PETALING JAYA: Despite rising as much as 33.3% to an intraday high of 40 sen, Gagasan Nadi Cergas Bhd ended its first trading day on the ACE Market of Bursa Malaysia with merely a premium of 0.5 sen or 1.7%.
The stock debuted at a premium of 9 sen to 39 sen at the opening bell, but it pared gains on selling pressure and closed at 30.5 sen on 118.6 million shares changing hands, being the second most actively traded counter.
Gagasan Nadi Cergas managing director Wan Azman Wan Kamal said the group intends to continue its efforts in actively tendering for both public and private sector projects.
“Going forward, we remain positive of the Malaysian construction sector outlook and believe that there are many more projects, such as education institutions, affordable housing and medical centers to be built in the near future.”
“We believe our listing today places us in a good position to support these nation-building initiatives. Additionally, our long-term contracts provide us with a stable foundation of recurring income, as we concurrently endeavour to secure new jobs and deliver ongoing works.”
Gagasan Nadi Cergas’s construction order book includes Rumah Selangorku in Putra Heights and Bukit Raja, 1Malaysia People’s Housing in Pasir Mas, Cardiology Centre for Hospital Serdang and Maktab Rendah Sains Mara in Bagan Datuk.
It also holds long-term contracts, namely a 20-year facility management concession for hostels of International Islamic University Malaysia in Kuantan, Pahang till 2034; a 20-year facility management concession for hostels of Universiti Teknikal Malaysia Melaka in Durian Tunggal, Malacca till 2037; a 20-year operation contract for a District Cooling System (DCS) to supply chilled water to the German-Malaysian Institute, Bangi till 2028 and upcoming 30-year operation contract for a DCS and electricity distribution under the Datum Jelatek development.
Gagasan Nadi Cergas plans to raised RM60 million from its IPO with RM42 million via public issue of new shares and RM18 million from the sale of existing shares.
Some RM14 million will be allocated for funding of the Asean Football Federation mixed development; RM6.5 million for capital expenditure of DCS under the Datum Jelatek development; and RM16.5 million for working capital.
Source: The Sun Daily