Listing Detail:
Listing Sought: ACE Market
Issue Price: RM 0.35

Dates:
Offer Period Open: 05 Mar 2018
Offer Period Close: 12 Mar 2018
Tentative listing date: 27 Mar 2018

Number of shares:
Public Issue: 125,000,000
Offer for Sale: 37,500,000
Private Placement: 63,125,000
 

Stock Code: GDB

Official Announcement

INITIAL PUBLIC OFFERING ("IPO") IN CONJUNCTION WITH THE LISTING OF GDB HOLDINGS BERHAD ("GDB" OR THE "COMPANY") ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES") COMPRISING:

(I) PUBLIC ISSUE OF 125,000,000 NEW ORDINARY SHARES ("SHARES") IN THE FOLLOWING MANNER:

• 12,500,000 NEW SHARES MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;
• 15,000,000 NEW SHARES MADE AVAILABLE FOR APPLICATION BY OUR ELIGIBLE DIRECTORS, EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF OUR GROUP;
• 25,625,000 NEW SHARES MADE AVAILABLE BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED INVESTORS; AND
• 71,875,000 NEW SHARES MADE AVAILABLE BY WAY OF PRIVATE PLACEMENT TO BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY; AND

(II) OFFER FOR SALE OF 37,500,000 EXISTING SHARES BY WAY OF PRIVATE PLACEMENT TO IDENTIFIED INVESTORS;

AT AN IPO PRICE OF RM0.35 PER SHARE, PAYABLE IN FULL UPON APPLICATION.

Company Overview

GDB Holdings Berhad is an investment holdings company. It's subsidiary, Grand Dynamic Builders Sdn. Bhd. is a full fledged building construction firm commencing its operation on May 2013. GDBSB is founded on a platform of expertise and competencies in terms of its people, technical know how and construction innovation towards Quality, Safety and Environment.

GDBSB vision of being REPUTABLE among players in the Malaysian construction industry in building foundations of success for all its stakeholders is pillared by a team of experienced construction personnel with years of exposure in delivering iconic and award winning structures in building and infrastructure construction projects.
 

Address & Contact:

No. 1-45, Jalan Puteri 4/8, Bandar Puteri
47100 Puchong, Selangor

Tel : +603 8066 6960
Fax : +603 8066 6965
Website: http://www.gdbsb.com

IPO Analysis

Share Capital
Market Cap: RM63.750 mil
Shares Issue to sell: 162.50 mil shares (Open to public: 125 mil shares)
Enlarged Issued Shares: 500 mil shares

Business
Construction Services
Residential: 35.05%
Mixed Development: 31.09%
Commercial: 33.86%

Fundamental
Market: ACE Market
Price: RM0.35 (eps til Oct:0.0401)
P/E & ROE: PE8.73, ROE64%
Cash & fixed deposit after IPO: RM 0.0266 per shares
NA after IPO: RM0.13
Total debt to current asset after IPO: 0.799 (Debt: 101.112 mil, Non-Current Asset: 12.087 mil, Current asset: 126.471 mil)
Dividend policy: 30%

Financial
Trade Receivable: 23 days
Trade payable: 24 days

Past Financial Proformance (Revenue, EPS before IPO)
2017 (until Oct): RM240.665 mil (eps: 0.0401)
2016: RM276.906 mil (eps: 0.0642)
2015: RM169.539 mil (eps: 0.0604)
2014: RM 86.628 mil (eps: 0.0301)

Net Profit Margin
2017: 8.33%
2016: 5.81%
2015: 4.23%
2014: 3.78%

Order Book Completion Forecast
31/12/2018: RM379.411 mil
31/12/2019: RM441.459 mil
31/12/2020: RM 34.024 mil

After IPO Sharesholding
Tan Sri Dato' Ir. Hj. Zaini Bin Omar: 0.06%
Cheah Ham Cheia: 51.80%
Alexander Lo Tzone Leong: 22.2%
Cheah Jun Kai: -
Datuk Chia Lui Meng: 0.05%
Kow Poh Gek: 0.05%

Director Remuneration (from gross profit 2017)
Tan Sri Dato' Ir. Hj. Zaini Bin Omar: 64k
Cheah Ham Cheia: 1.127 mil
Alexander Lo Tzone Leong: 1.185 mil
Cheah Jun Kai: 225k
Datuk Chia Lui Meng: 46k
Kow Poh Gek: 49k
Total director remuneration from gross profit: 7.2%

Use of fund
Capital Expenditure: 56.39%
Working capital (pay debt): 34.06%
Working capital (Salaries): 1.55%
Listing Expenses: 8.0%

Conclusion
Good thing is:
1. 2018 & 2019 order book able to let the company continue to sustain profit.
2. Revenue, Net profit margin, EPS is increasing.

The bad things:
1. Listing on ACE market.
2. Director fee is expensive.
3. Profit margin is still below 10%.
4. Too many competitor in the same industry.
5. Property segment still in weak stage, will effected their business as well.
6. Past 3 year revenue is highly reliance on major customers (Perdana Parkcity S/B, Trans Res Crop S/B, Etiqa Ins Bhd).

Conclusions
Is a average IPO. Still will have some growth on 2 years time.

News: GDB Holdings to raise RM43.75mil from IPO

KUALA LUMPUR: Construction services firm, GDB Holdings Bhd, aims to raise RM43.75mil from its initial public offering (IPO) to fund future expansion.

Managing director, Cheah Ham Cheia said GDB, which is principally involved in the construction of high-rise residential, commercial and mixed development projects, is slated for listing on Bursa Malaysia Securities Bhd’s ACE Market on March 27.

“Part of the proceeds from our IPO would be allocated to purchase new machinery and equipment, which will enhance our capacity to take on more projects simultaneously, and achieve better time management in our projects,” he told reporters at the company’s IPO prospectus launch, here today.

GDB has allocated RM24.67mil for capital expenditure comprising RM8.67mil for new construction machinery and equipment, RM8mil for a new office and RM8mil for land purchase.

Meanwhile, RM15.58mil has been earmarked for working capital comprising suppliers and subcontractors payment amounting to RM14.9mil and RM680,000 for employee salaries. Listing expenses would amount to RM3.5mil.

Cheah said the group’s proposed listing was aimed at elevating GDB’s profile, expand its current capacity and also to extend services into other building segments such as hospitals, schools, universities, hotels, convention centres and shopping malls.

“We also plan to expand into civil and infrastructure construction services, such as roads and bridges, to complement our current strengths in the building sector,” he said.

Towards this objective, the company is registered as a Grade G7 contractor with the Construction Industry Development Board of Malaysia, allowing it to tender for projects with unlimited value.  GDB projects which were completed ahead of time include One Central Park in Desa ParkCity as well as several sections under Parcel B of KL Eco City.

As at February 2018, GDB’s order book stood at RM855mil comprising projects such as Westside IlI in Desa ParkCity, Etiqa Office Tower along Jalan Bangsar, AIRA Residence in Damansara Heights and Menara Hap Seng 3 within the Kuala Lumpur city centre.

- Bernama