Construction firm GDB to list on ACE Market

PETALING JAYA: Construction company GDB Holdings Bhd is looking to list on the ACE Market of Bursa Malaysia and will use the proceeds from its proposed initial public offering (IPO) for capital expenditure and working capital.

In a draft prospectus exposure on the Securities Commission website, the group said the bulk of the fund raised will be used for the purchase of new construction machinery and equipment, a new office and land in Selangor.

GDB’s IPO involves the public issue of 125 million new shares, of which 12.5 million shares will be made available for Malaysian public, 15 million for eligible directors, employees and persons who have contributed to the group’s success.

The remaining 25.6 million shares will be made available by way of private placement to identified investors, and 71.87 million shares to identified bumiputra investors approved by the Ministry of International Trade and Industry.

There will also be an offer-for-sale of 37.5 million of existing shares via private placement.

GDB’s order book comprising unbilled portions of projects-in-progress stands at RM695.97 million, to be recognised progressively over the next four financial years to 2020.

For fiscal year 16, GDB’s net profit more than doubled to RM16.09 million, from RM7.18 million in the previous year.