Gagasan Nadi Cergas eyes RM60m from IPO

KUALA LUMPUR, Dec 13 (Bernama) — Gagasan Nadi Cergas Bhd, which is slated for listing on Bursa Malaysia’s ACE market on Jan 8, 2019, expects to raise RM60 million in proceeds from its Initial Public Offering (IPO).

Of the proceeds, RM14 million will be allocated to fund its ASEAN Football Federation (AFF) mixed development, RM6.5 million for a district cooling system (DCS) for the Datum Jelatek development and RM16.5 million for working capital, said Group Managing Director Wan Azman Wan Kamal.

Under the IPO, the building construction player will issue 140 million new shares, with 100 million allocated for private placements to identified investors and the rest for Malaysians as well as eligible directors, employees and selected persons.

TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.

Wan Azman said the listing would elevate the group’s profile in its bid to expand its construction and facilities management business.

“As of Nov 15, 2018, our construction order book stood at more than RM600 million, which will last until 2021,” he told media after its prospectus launch on Thursday.

The group’s ongoing projects include Rumah Selangorku in Putra Heights and Bukit Raja, 1Malaysia People Housing (PR1MA) in Pasir Mas, the Cardiology Centre for Hospital Serdang and Maktab Rendah Sains Mara in Bagan Datuk.

The group also holds three 20-year concession contracts, comprising hostel facility management for the International Islamic University Malaysia in Kuantan and Universiti Teknikal Malaysia in Melaka as well as an operation contract for a DCS to supply chilled water to the German-Malaysian Institute in Bangi.

TA Securities Corporate Finance Head Ku Mun Fong said good fundamental stocks are still in demand amid the current uncertain Bursa Malaysia movement.

“Sentiments do play a part now. I think Bursa Malaysia’s investors at large are still looking for good fundamental companies to invest in,” he said.

— BERNAMA

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