Construction group Gagasan Nadi Cergas' IPO oversubscribed by 20 times

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KUALA LUMPUR (Dec 28): Gagasan Nadi Cergas Bhd, which is slated to list on Bursa Malaysia’s Ace Market on Jan 8, saw the public tranche of its initial public offering (IPO) oversubscribed by 20.2 times.

The construction group, which is also involved in facilities management services and holds two university concession projects, said in a statement yesterday it has received 6,029 applications for 423.5 million shares worth RM127 million for its public tranche of 20 million shares.

The group’s IPO entails 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.

It intends to raise RM42 million from the IPO, to fund the group’s future expansion and working capital requirements. From the offer of sale, it will raise RM18 million, which will accrue entirely to the offerors.

Going forward, Gagasan Nadi Cergas group managing director Wan Azman Wan Kamal said, the group intends to continue its strategic direction to expand recurring income from long-term contracts through the utilities segment.

“Additionally, 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 than 20 years in completing sizable projects across the nation,” he said.

As at Nov 15, the group’s construction order book stood at over RM600 million.

This article first appeared in The Edge Financial Daily, on Dec 28, 2018.

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