PETALING JAYA: GDB Holdings Bhd
(GDB) has announced a set of corporate exercises aimed at accelerating its growth trajectory, strengthening its financial positioning, and expanding its business model into property development.
Ia filing with Bursa Malaysia, the construction company has proposed a RM81.6mil acquisition of 51% equity interest in both Bina Tegas Sdn Bhd and BT Borneo Engineering Sdn Bhd.
The total purchase consideration will be funded through RM40.8mil in cash and the issuance of 96.91 million new GDB consideration shares at 42 sen each.
To protect shareholder value, the vendors have provided a profit guarantee, committing to a cumulative profit after tax (PAT) of at least RM45mil for the period spanning July 2026 to December 2028, along with a target order book of RM400mil.
GDB noted the acquisition will significantly enhance its operational scale and boost its total order book to RM741.81mil.
To fund the expansion, GDB plans to execute a proposed private placement of up to 309.38 million new shares—representing up to 30% of its total issued shares—to independent third-party investors.
Under a minimum scene, this placement will raise RM40.8mil to cover the cash portion of the acquisition.
Complementing this is a proposed renounceable rights issue of up to 205.36 million new shares alongside free detachable warrants on a 1-for-7 basis.
Backed by an irrevocable undertaking from acting group managing director Andy Lai Wee Young, the rights issue targets a minimum raised amount of RM30.03mil.
Depending on subscription levels, the combined exercises are projected to generate total gross proceeds ranging from RM70.83mil to RM183.48mil.
Beyond funding the acquisition, these funds will support ongoing construction projects, potential landbank purchases, and general working capital requirements, thereby fortifying equity without overburdening group gearing, the group noted in its filing.
GDB is also proposing to formalise its entry into the property development sector via GDB Development Sdn Bhd.
Led by industry veteran Ir Lim Sow Wu, the division’s flagship venture is a planned mixed-use development in Kuching, Sarawak, carrying an estimated gross development value (GDV) of RM500mil.
