GFM debuts on ACE market at 46 sen
KUALA LUMPUR: GFM Services Bhd made its debut on the Ace Market of Bursa Malaysia yesterday at 46 sen, an eight sen premium above its issue price of 38 sen.
The integrated facilities management firm, which recently completed a reverse takeover of AsiaEP Resources Bhd, saw 3.28 million shares changing hands at the opening bell.
“We are happy with the opening price, it shows the market has confidence in us,” managing director, Ruslan Nordin told a press conference after the listing ceremony.
He said the listing is to increase the company’s visibility and partake of its corporate exercises.
The group aims to raise up to RM42 million from the initial public offering (IPO), of which RM4 million will be used for listing expenses and working capital, with the remaining RM38 million being returned to existing shareholders who sold 100 million of their shares.
He said the company has to date 26 projects worth RM1.8 billion in the pipeline with a hit rate of three to five per cent.
On the company’s revenue growth target, Ruslan anticipates it to be at more than nine per cent year-on-year for 2017.
“We should be able to grow ahead of the market, which the facilities management industry valued at RM4.1 billion in 2015.
“It is also expected to grow by nine per cent a year up to 2020,” he said.
GFM’s revenue grew at a compound annual growth rate (CAGR) of 11 per cent from financial year 2011 (FY2011) to FY2015.
In FY2015, net profit stood at RM13.8 million on the back of revenue of RM78.6 million.
Currently, the company has an outstanding order book of RM377 million which comprises long-term contracts to last until 2034.
Ruslan said GFM’s current market share stood at 6.3 per cent in the integrated facilities management ( IFM) education segment and 3.7 per cent in the government sector.
He believes the listing exercise would further enhance market share expansion in the near future.
“We are currently focused on the local market, with plans in the near future to venture to the Middle East and the Asian region,” he said.
Ruslan also said the company is expected to complete a merger and acquisition exercise by yearend, but declined to elaborate further.
Earlier in a filing to Bursa Malaysia, GFM said its wholly-owned unit, Global Facilities Management Sdn Bhd was awarded a five-year RM22.8 million contract on Dec 16 last year to manage and maintain the Menara Matrade in Jalan Sultan Haji Ahmad Shah here.
GFM said the contract began on Jan 1 this year. — Bernama