GDB targets RM500mil jobs, proposes bonus issue


Its group managing director Cheah Ham Cheia (file pic) said: “We are optimistic of making encouraging headway in our current works in hand.

PETALING JAYA: GDB Holdings Bhd is looking at securing RM500mil worth of new jobs this year to propel the group further.

Its group managing director Cheah Ham Cheia said: “We are optimistic of making encouraging headway in our current works in hand.

“Moreover, we have set a target to win RM500mil worth of new jobs in 2021 to propel the group further. Currently, our tender book stands at RM1.3bil, ” he said in a statement.

The construction services firm has also proposed to undertake a bonus issue of new ordinary shares on the basis of one bonus share for every two existing GDB shares.

In a filing with Bursa Malaysia, the company said the entitlement date would be determined and announced later.

In addition, the group has also proposed to undertake a bonus issue of free five-year warrants on the basis of two warrants for every five existing shares held by shareholders on the same entitlement date to be determined later.

For illustration, the indicative warrant exercise price will be 54 sen apiece, denoting a discount of approximately 33.96% based on the five-day volume weighted average market price of GDB shares up to and including the latest practicable date of April 6 of 81.77 sen per GDB share.

Hence, the full exercise of warrants may potentially raise up to RM135mil in proceeds within the five-year tenure for working capital purposes.

GDB has about RM2.1bil outstanding orderbook as at Dec 31,2020. GDB remained in net cash position with zero borrowings to date.

Cheah said the potential additional working capital from the exercise of warrants would assist the group in taking advantage of the buoyant prospects in the construction sector.

“Although Malaysia’s economic recovery is expected to be gradual, the ongoing rollout of the vaccines under the national Covid-19 immunisation programme is expected to help boost market sentiments.

“We believe in positioning ourselves for the long haul to capture viable opportunities in the construction sector in the near future, ” Cheah said.

GDB’s 1-for-2 bonus issue of shares would result in the issuance of 312.5 million new shares and increase the group’s share base from 625.0 million shares to 937.5 million. The group’s share capital would remain unchanged at RM62.6mil.

Assuming the full exercise of warrants, GDB said the bonus issue of warrants would result in the issuance of 250.0 million new shares in GDB, and further increase the group’s share base to 1,187.5 million.

GDB’s share capital would expand to RM197.6mil.

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