GDB signs with Alliance Investment Bank for IPO
KUALA LUMPUR: Construction services firm GDB Holdings Bhd (GDB) has signed an underwriting agreement with Alliance Investment Bank Bhd (AIBB) - its principal adviser, sponsor, sole underwriter, and placement agent - for its proposed initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia Securities Bhd.
The proceeds from the IPO will be used for capital expenditure, working capital, and defraying of listing expenses.
GDB’s IPO will result in the public issue of 125 million new shares representing 20 per cent of the group’s enlarged share capital.
Of the 125 million new shares, 12.5 million shares will be for application by the Malaysian public; and 15 million shares for application by eligible directors, employees and persons who have contributed to the success of the group.
Meanwhile, approximately 25.6 million shares will be allocated for private placement to identified investors; and approximately 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.
GDB’s managing director, Cheah Ham Cheia signed the underwriting agreement on behalf of GDB, while AIBB was represented by chief executive officer, Mahesh P. Rupawalla, in the presence of GDB’s executive director, Alexander Lo Tzone Leong and AIBB’s head of corporate finance – Capital Markets, Tee Kok Wah.
Cheah said since commencing operations in 2013, the group has established a track record for delivering works ahead of schedule.
“We implement stringent practices to uphold environmental, quality, and safety standards at our projects.
The IPO is the next step in our expansion plan as it will provide us with the capital to generate growth.”
The group’s customers consist of property developers and corporations including Perdana ParkCity Sdn Bhd, Selangor Properties Berhad, Trans Resources Corporation Sdn Bhd and Etiqa Insurance Berhad.
Barring unforeseen circumstances, GDB targets to list on the ACE Market of Bursa Malaysia Securities Berhad in the first quarter of 2018.
Mahesh further added, “The Group is helmed by an experienced management team that has delivered several highrise construction projects in Kuala Lumpur.
“We are optimistic in the Group’s ability to reach greater heights, and are proud to play a key role in their listing on the ACE Market of Bursa Malaysia.”