KUALA LUMPUR: Gagasan Nadi Cergas Bhd's public portion of its initial public offering (IPO) has been oversubscribed by 20.2 times.
In a statement today, the company said a total of 6,029 applications were received for 423.5 million shares, worth RM127mil, for its public tranche comprising 20 million shares made available for application.
Group managing director, Wan Azman Wan Kamal, said the oversubscription of the public tranche, together with strong response from investors for the private placement portion, signified the confidence of the investing community in the company's business viability and its ability to grow in the future.
"Going forward, we intend to continue our strategic direction to expand recurring income from long-term contracts through our utilities segment.
"We look forward in our natural progression into property development on the back of our core specialisation in design and build and track-record of more 20 years in completing sizeable projects across the nation.
"We recognise that our upcoming listing exercise places Gagasan Nadi Cergas in an advantageous position to support the government's efforts in propelling Malaysia to first-world status,” he said.
The company's IPO entailed a public issue of 140 million new shares and an offer for sale of 60 million existing shares at 30 sen per share, representing 26.6% of the group's enlarged share capital.
The group aims to raise RM42mil in proceeds from the public issue, out of which RM14mil would be allocated to fund the ASEAN Football Federation mixed development, RM6.5mil as capital expenditure for the Datum Jelatek development and RM16.5mil for working capital.
The balance RM5mil is to defray estimated listing expenses.
The total proceeds from the offer for sale of RM18mil would be accrued entirely to the offerors, it said.
The company is slated to be listed on Bursa Malaysia's ACE Market on Jan 8, 2019.
It has established a dividend policy of distributing up to 30% of net profit as dividends from the financial year ending Dec 31, 2019 onwards. - Bernama