CEO Morning Brief

GDB Climbs Over Two-year High After Contract Win

Publish date: Tue, 25 Jun 2024, 10:58 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 24): Shares in GDB Holdings Bhd (KL:GDB) rose to their highest in more than two years in highly active trade, after the construction company announced a contract win worth RM865.66 million.

GDB climbed as much as 24% or eight sen to 41 sen, its highest since April 2022, on Monday. The stock later closed four sen or 12% higher at 37 sen, valuing the company at RM347 million on Bursa Malaysia.

Trading volume totalled over 64 million shares.

In a filing with Bursa last Friday, the construction firm announced that its wholly owned subsidiary, Grand Dynamic Builders Sdn Bhd (GDBSB), had accepted a letter of award for the construction of Plot B of a logistics hub from Strategic Sonata Sdn Bhd.

The announcement confirmed The Edge Malaysia weekly's report for the week of April 15 to 21, 2024, citing sources, that GDB was close to securing a substantial contract to build a warehouse in Shah Alam, Selangor.

Plot A of the logistics hub has been awarded to construction giant IJM Corp Bhd (KL:IJM) by Strategic Sonata, according to a separate filing.

A check with the Companies Commission of Malaysia showed that Permodalan Nasional Bhd owns 30% of Strategic Sonata, while the balance 70% is owned by Singapore's Mapletree Dextra Pte Ltd.

As the main contractor, GDB has to design, build and maintain a five-storey ramp-up warehouse, complete with offices, amenities, and supporting facilities.

The job is scheduled to start this month, and be completed in 30 months, which is by December 2026.

Source: TheEdge - 25 Jun 2024

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