GDB HOLDINGS BHD

Fair value: RM0.41

GDB Holdings Bhd (GDB) is principally involved in the provision of construction services, focusing on high rise residential, com- mercial and mixed development projects in Malaysia as a main contractor and principal works contractor.

As a construction services provider, GDB has a track record of completing all projects ahead of the contractual completion date, besides providing solutions which are reliable in terms of quality and safety.

GDB also selectively engages subcontractors to carry out different parts of its construction activities particularly those requiring other specialised trade works for operating costs’ efficiency.

As at Feb 6, 2018, the group has an outstanding orderbook of RM854.9mil, which comprise mainly of building jobs such as Westside IlI in Desa ParkCity, Etiqa Office Tower along Jalan Bangsar, AIRA Residence in Damansara Heights and Menara Hap Seng 3 within the Kuala Lumpur city centre.

Tender book stood at RM817mil for hotel, residential and office construction works.

PublicInvest Research’s fair value is RM0.41 based on a nine times price-earnings (PE) multiple to its FY2018 earnings per share (EPS) of 4.6 sen.

The initial public offering (IPO) is expected to raise approximately RM43.8mil from the issuance of 125 million new shares, with 56.4% of its proceeds to be utilised for capital expenditure and 35.6% of proceeds as working capital that are earmarked to drive future growth.

GDB will focus its growth on growing its business in high rise building construction further, the expansion of construction business to other building segments, expansion into civil and infrastructure construction services, and the purchase of a new office, additional construction machinery and equipment as well as land for storage.