Listing Detail:
Listing Sought: ACE Market
Issue Price: RM0.30

Dates:
Offer Period Open: 13 Dec 2018
Offer Period Close: 24 Dec 2018
Tentative listing date: 8 Jan 2019

Number of shares:
Public Issue: 140,000,000
Offer for Sale: 60,000,000
Private Placement: 160,000,000

Stock Code: NADIBHD

Official Announcement

(I) PUBLIC ISSUE OF 140,000,000 NEW ORDINARY SHARES IN GAGASAN NADI CERGAS BERHAD ("PUBLIC ISSUE SHARES") COMPRISING:

- 100,000,000 PUBLIC ISSUE SHARES AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS;

- 20,000,000 PUBLIC ISSUE SHARES AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC;

- 20,000,000 PUBLIC ISSUE SHARES AVAILABLE FOR APPLICATION BY OUR ELIGIBLE DIRECTORS AND EMPLOYEES AND OTHER PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF OUR GROUP; AND

(II) OFFER FOR SALE OF 60,000,000 EXISTING ORDINARY SHARES IN GAGASAN NADI CERGAS BERHAD ("OFFER SHARES") AVAILABLE FOR APPLICATION BY WAY OF PRIVATE PLACEMENT TO SELECTED INVESTORS;

AT AN ISSUE/OFFER PRICE OF RM0.30 PER PUBLIC ISSUE SHARE/OFFER SHARE IN CONJUNCTION WITH OUR LISTING ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD.

Company Overview

Gagasan Nadi Cergas Berhad, an investment holding company, engages in the construction of residential and non-residential buildings in Malaysia. It operates through three segments: Construction, Facility Management, and Utility.

The company constructs non-residential buildings, such as double storey shop offices, public schools, government office complexes and branch offices, administrative buildings, laboratory and training buildings, student hostels, military camps and police stations, training centers, community halls, electricity substations, and aircraft hangars; and residential buildings comprising landed and high rise buildings.

It also provides facility management services of student hostels and related facilities; operates a district cooling system for the supply of chilled water; and offers property development services, as well as supplies and installs equipment, and undertakes mechanical and electrical related works.

The company was founded in 1995 and is headquartered in Petaling Jaya, Malaysia.

Address & Contact:

F-1 @ 8 Suria
33 Jalan PJU 1/42
47301, Petaling Jaya
Selangor Darul Ehsan, Malaysia

Tel: +603 7887 3388
Fax: +603 7887 3355
Email: hq@nadicergas.com
Website: https://nadicergas.com/
 

Share Capital

• Market Cap: RM225.900 mil
• Shares Issue to sell: 200 mil shares (IPO 140mil, private placement 60mil)
• Enlarged Issued Shares: 753 mil shares

Order Book Revenue by Completion Date

• 2018: RM 11.88 mil
• 2019: RM 38.06 mil
• 2020: RM272.60 mil
• 2021: RM360.32 mil

Past Financial Proformance (Revenue, EPS)

• FPE 2018: RM121.646 mil (6mths eps: 0.0231)
• 2017: RM212.511 mil (eps: 0.0661)
• 2016: RM227.854 mil (eps: 0.0978)
• 2015: RM206.344 mil (eps: 0.0502)
• 2014: RM324.028 mil (eps: 0.0738)

Net Profit Margin

• FPE 2018: 14.29% (6mths)
• 2017: 23.42%
• 2016: 32.32%
• 2015: 18.31%
• 2014: 17.15%

Use of fund

• AFF Mixed Development: 33.3%
• Capital expenditure on product: 15.5%
• Working capital: 39.3%
• Listing expenses: 11.9%

News: Gagasan Nadi Cergas to raise RM42m from IPO

Construction company Gagasan Nadi Cergas Bhd is looking to raise RM42 million from its upcoming initial public offering (IPO) exercise on Bursa Malaysia’s ACE Market despite the current slowdown in the industry sector.

The company is seeking to expand into the property development market from its four business segments including building construction, provision of facilities management services and operations of district cooling system (DCS) for the supply of chilled water.

The company’s IPO entails a public issue of 140 million new shares and offer for sale of 60 million existing shares at 30 sen apiece.

Of the total, 20 million shares will be for local public, 20 million for eligible directors and employees, while the remaining 100 million shares are for private placement to identified investors.

Meanwhile, 60 million existing shares would be allocated for private placement as well.

As for the proceeds from the public issue of RM42 million to be raised, RM14 million would be allocated for the funding of Asean Football Federation (AFF) mixed development, RM6.5 million for capital expenditure of its DCS under the Datum Jelatek Development, and RM16.5 million for working capital.

The remaining RM5 million is to defray estimated listing expenses, while the total proceeds from the offer for sale of RM18 million will accrue entirely to the offeror.

Group MD Wan Azman Wan Kamal said the proposed listing of Gagasan Nadi Cergas is aimed to elevate its profile, extend its services in moving up in the construction value chain and enhance the group’s business model.

“While we have achieved a track record of more than 20 years in the construction sector, we recognise the importance of moving up in the value chain and transitioning our business model to include a recurring income stream.

“As such, part of the proceeds from our IPO would be allocated for our utilities segment in our DCS under the Datum Jelatek development, which is in line with our strategy to expand recurring income from longterm contracts,” he told reporters after the company’s prospectus launch in Kuala Lumpur yesterday.

Wan Azman also said its AFF mixed development in Putrajaya would house the new football federation’s headquarters and 458 units of serviced apartments.

“This would establish Gagasan Nadi Cergas’ mark as a property developer, extending our capability within the construction value chain,” he added.

Currently, the group holds three long-term recurring income contracts including a 20-year facility management concession for a hostel at the International Islamic University Malaysia campus in Kuantan, Pahang, until 2034.

It also has a 20-year facility management concession for hostel at Universiti Teknikal Malaysia Melaka campus in Durian Tunggal, Melaka, until 2037 and a 20-year operation contract for a DCS to supply chilled water to the German-Malaysia Institute in Bangi, Selangor, until 2028.

Wan Azman said despite the sombre outlook on the construction sector following the government’s move to review some mega projects and reconsider the way tenders are awarded, the group is optimistic that it would be able to secure several projects from both the public and private sectors.

The firm’s IPO is available for subscription until Dec 24. The group targets to be listed on the ACE Market on Jan 8 next year.