Gagasan Nadi expects to raise RM60m from IPO
KUALA LUMPUR: Gagasan Nadi Cergas Bhd, which is slated to be listed on Bursa Malaysia’s ACE Market on January 8, expects to raise RM60 million in proceeds from its initial public offering (IPO).
Of the proceeds, RM14 million would be allocated for its Asean Football Federation mixed development, RM6.5 million for a district cooling system (DCS) for the Datum Jelatek development and RM16.5 million for working capital, said group managing director Wan Azman Wan Kamal.
Under the IPO, Gagasan Nadi will issue 140 million new shares, with 100 million allocated for private placements to identified investors and the rest for Malaysians, as well as eligible directors, employees and selected individuals.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
Wan Azman said the listing would elevate the group’s profile amid plans to expand its construction and facilities management business.
“As of November 15, our construction order book stood at more than RM600 million, which will last us until 2021,” said Wan Azman after the prospectus launch, here, yesterday.
Its ongoing projects include Rumah Selangorku in Putra Heights and Bukit Raja, 1Malaysia People Housing in Pasir Mas, as well as the Cardiology Centre for Hospital Serdang and Maktab Rendah Sains Mara in Bagan Datuk.
It also holds three 20-year concession contracts, comprising hostel facility management for the International Islamic University Malaysia in Kuantan and Universiti Teknikal Malaysia in Melaka, as well as an operation contract for a DCS to supply chilled water to the German-Malaysian Institute in Bangi.
TA Securities corporate finance head Ku Mun Fong said good fundamental stocks were still in demand.
“Sentiments do play a part now. I think Bursa Malaysia’s investors at large are still looking for companies with solid fundamentals to invest in,” he said.