GDB Holdings to raise RM43.75mil from IPO

KUALA LUMPUR: Construction services firm, GDB Holdings Bhd, aims to raise RM43.75mil from its initial public offering (IPO) to fund future expansion.

Managing director, Cheah Ham Cheia said GDB, which is principally involved in the construction of high-rise residential, commercial and mixed development projects, is slated for listing on Bursa Malaysia Securities Bhd’s ACE Market on March 27.

“Part of the proceeds from our IPO would be allocated to purchase new machinery and equipment, which will enhance our capacity to take on more projects simultaneously, and achieve better time management in our projects,” he told reporters at the company’s IPO prospectus launch, here today.

GDB has allocated RM24.67mil for capital expenditure comprising RM8.67mil for new construction machinery and equipment, RM8mil for a new office and RM8mil for land purchase.

Meanwhile, RM15.58mil has been earmarked for working capital comprising suppliers and subcontractors payment amounting to RM14.9mil and RM680,000 for employee salaries. Listing expenses would amount to RM3.5mil.

Cheah said the group’s proposed listing was aimed at elevating GDB’s profile, expand its current capacity and also to extend services into other building segments such as hospitals, schools, universities, hotels, convention centres and shopping malls.

“We also plan to expand into civil and infrastructure construction services, such as roads and bridges, to complement our current strengths in the building sector,” he said.

Towards this objective, the company is registered as a Grade G7 contractor with the Construction Industry Development Board of Malaysia, allowing it to tender for projects with unlimited value.  GDB projects which were completed ahead of time include One Central Park in Desa ParkCity as well as several sections under Parcel B of KL Eco City.

As at February 2018, GDB’s order book stood at RM855mil comprising projects 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. - Bernama