GDB Holdings 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 said it intends to acquire a piece of land to store its construction machinery and equipment, noting the group currently rents storage facilities in Batu Arang, 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, via its wholly owned subsidiary Grand Dynamic Builders, is principally involved in the provision of construction services, focusing on high-rise residential, commercial and mixed development projects.
Since the commencement of its business in May 2013, GDB has completed three projects, comprising a mixed development KL Eco City, BBCC Development Sdn Bhd's project in Jalan Pudu, Kuala Lumpur, and One Central Park.
To date, GDB said, the group has been appointed as the main contractor for five construction projects and principal works contractor for two construction projects.
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. Its tender book for high-rise condominiums and commercial buildings jobs in Kuala Lumpur is worth RM1.28 billion.
For FY16, GDB’s net profit more than doubled to RM16.09 million, from RM7.18 million in FY15. It has total assets of RM110.43 million and total liabilities of RM83.23 million.