Posted by nottycat > 2016-03-17 18:22 | Report Abuse

Aiyo, dont fly yet...the funds from my house refinancing havent release yet. Wait for me....:(

Posted by tksw > 2016-03-17 21:51 | Report Abuse

walau, nottycat sifu, all in arr? buy 1lot -2 lots slow slow lar..

Posted by PISON85 > 2016-03-18 06:36 | Report Abuse

Management would want to make sure that the average share price to be higher before completing the private placement. They would not want to sell their company cheap. I think gadang will slowly creep up back to the 2.20-2.50 level at least.

Posted by Momozaza > 2016-03-18 08:08 | Report Abuse

Agree with pison85. As we see tan Sri Dato Kok Onn and other director bought quite a lot at the price of 2.07-2.09. It doesn't make sense to PP with cheap price.

Posted by nottycat > 2016-03-18 08:14 | Report Abuse

Ok tksw sifu, i follow u slow slow buy :)

Posted by The One > 2016-03-18 14:51 | Report Abuse

Any news on this counter. Why sliding down? Got hope for recovery?

Posted by yeekarwai88 > 2016-03-18 14:54 | Report Abuse

because of private placement.wait until after private placement.

Posted by The One > 2016-03-18 14:55 | Report Abuse

Help me elaborate in details pls.. thks.. :)

Posted by Ricky Kiat > 2016-03-18 15:50 | Report Abuse

dumb dumb buy ....

Posted by yeekarwai88 > 2016-03-18 15:56 | Report Abuse

because private placement will sell with discount price(5day average-10%discount),hence press down the price to get cheap share.

Posted by noobnnew > 2016-03-18 15:59 | Report Abuse

But if the investor know they can get cheap on market then why they want to subscribe to private placement? Better open market buy right?

Posted by yeekarwai88 > 2016-03-18 16:02 | Report Abuse

first,no matter how cheap the price in open market,PP price will be even lower.

second,PP only for institution investors.

Posted by dreamer74 > 2016-03-18 20:22 | Report Abuse

why dun Gadang to move the share price up so PP can fetch better price

Posted by yeekarwai88 > 2016-03-18 20:23 | Report Abuse

zzz,lazy to explain already.
死牛一边颈。

Posted by paperplane2016 > 2016-03-18 23:27 | Report Abuse

Private placement of in small scale is ok. But if as big as big 10%, better run. It is as good as right issues, just tht u can't subscribe, and u have no way but to buy in mkt and share get diluted quicly

Posted by bgvalue > 2016-03-19 09:43 | Report Abuse

I wouldn't worry too much on this private placement exercice. Gadang has more than 200mil cash in their books as of nov 15. This private placement will generate around 45mil cash for the company. It is weird that the major shareholders are willing to dilute themselves for cash they don't actually need in the first place.

There are 3 scenarios to why they need this PP.

1) their current project is depleting their cash reserves faster than what the company can generate.

2) They need cash to participate in a new project. Example mrt2 contracts.

3) strategic alliance with new investor that can help bring in new and bigger projects for the company. Example the pan borneo contracts.

I doubt it's because of 1. If this is the case, the company still have abilities to borrow money. Their current net gearing is only 10%.

Posted by kancs3118 > 2016-03-19 13:05 | Report Abuse

(2) and (3): hopefully...

Posted by tonylim > 2016-03-19 13:11 | Report Abuse

yea, its strange, a rights issue with warrants would have been better

Posted by kancs3118 > 2016-03-19 13:28 | Report Abuse

current climate/ sentiment - maybe rights can risk being under subscribed...furthermore, rights issue is more time consuming than private placement..... anyway - KokOnn is an honest man - he will not short change the shareholders..
waiting for them to announce the MRT3 viaduct project ,,,,and this baby will fly...

Posted by cricketlast > 2016-03-21 16:18 | Report Abuse

Guys,

actually the dilution effect on the share price should not be 10% since the investor of the private placement will need to put in money into the company. Below is my calculation (i am assuming a share price of RM2 pre placement for the sake of simplicity)

Pre PP: Share price = RM2; Share outstanding = 235 mil ==> Mrkt Cap = RM470mil

PP offer: Share price = RM1.8 (10% discount); Share outstanding = 23.5mil (10% of shares outstanding) ==> RM42.3mil

Post PP:

Pre PP Mrkt Cap + PP = RM470mil + RM 42.3 mil = RM512.3mil

Shares outstanding = 258.5 mil

==> Share price post PP = RM512.3 mil/ 258.5 mil = RM1.98

Which is only 1% discount. Is my calculation correct? Appreciate any feedback.

Thanks guys

Posted by tksw > 2016-03-21 17:01 | Report Abuse

cricketlast sifu, 10% of 10% = 1% of 100% ..

Posted by 2721 > 2016-03-21 20:59 | Report Abuse

i curious who will buy the PP jek, EPF ar,haha

Posted by bgvalue > 2016-03-21 22:25 | Report Abuse

2721,
pp is normally meant for high net worth individuals or institutional investors. If the pp investor is a big institutional investor like epf for example, this would provide better coverage for the company in the future. More analyst will follow the stock.

Posted by 77huat77 > 2016-03-21 22:56 | Report Abuse

All contruction fly gadang is a special one

Posted by tksw > 2016-03-22 11:18 | Report Abuse

77huat77 sifu, Gadang manipulated to the core..

Posted by tksw > 2016-03-22 11:19 | Report Abuse

small fly got to stand aside, watching big boy play >_<

Posted by yeekarwai88 > 2016-03-22 20:58 | Report Abuse

recently too quiet,haha.

Posted by 2721 > 2016-03-22 21:00 | Report Abuse

Let's make some noise, let's party, hahaha

Posted by yeekarwai88 > 2016-03-22 21:16 | Report Abuse

haha,when complete PP le,wait until neck too long.
and also waiting mrt2 project.

Posted by mamatede > 2016-03-22 22:07 | Report Abuse

pp need to complete before April..

Posted by yeekarwai88 > 2016-03-22 22:21 | Report Abuse

ok,wait more two weeks.

Posted by didi2005 > 2016-03-22 23:20 | Report Abuse

April announce project, pp, and come out quater result, if all positive, will hit new high~~~

Posted by cricketlast > 2016-03-23 11:32 | Report Abuse

I think they will announce the award of a new contract first (hopefully MRT 2 related), then fixed the PP price.

That was what they did in 2014.
1) Announce the award of RM350mil rapid project on 11th June 2014 (price jump from 1.71 to 1.86)
2) Fixed the price of the private placement on the 27th June 2014 ( fixed the PP price @ 1.68, 10% discount of the 5 day average price)
3) list the private placement on the 4th July (share price adjusted by 2 cents on the opening to RM1.84)

Feel free to check the historical announcement. Good luck.

Posted by yeekarwai88 > 2016-03-23 16:45 | Report Abuse

zzz,still press the price.

Posted by SJSOON > 2016-03-23 20:46 | Report Abuse

Don't worry. Don't care everything. Just buy.

Posted by 2721 > 2016-03-23 20:48 | Report Abuse

yea..many ppl got bonus on Mar, so just sai lang..hahahaha

Posted by yeekarwai88 > 2016-03-23 21:05 | Report Abuse

top up 1.92 two week ago.
just waiting mrt 2

Posted by mamatede > 2016-03-23 21:08 | Report Abuse

just accumulate...

Posted by nottycat > 2016-03-23 22:32 | Report Abuse

2721 sifu, got bonus share issue in march? What is the ex date?

Posted by paperplane2016 > 2016-03-23 22:33 | Report Abuse

Wait until u die also nothing

Posted by nottycat > 2016-03-23 23:09 | Report Abuse

Mr paperplane, pls mind your language and your dirty mouth.

Posted by yeekarwai88 > 2016-03-23 23:12 | Report Abuse

just ignore the dog.

Posted by 2721 > 2016-03-23 23:16 | Report Abuse

lol..not bonus share la, is ur job geh annual bonus and increment ==lll

Posted by nottycat > 2016-03-24 00:03 | Report Abuse

Yes sifu yeekarwai88, you are right. We should not waste our precious time on such fools :)

Posted by nottycat > 2016-03-24 00:03 | Report Abuse

Lol sifu 2721 :p

Posted by force > 2016-03-24 06:22 | Report Abuse

Morning everyone :)

Posted by SJSOON > 2016-03-24 07:21 | Report Abuse

Good morning.

Posted by Mohd Fahmi Bin Jaes > 2016-03-24 07:32 | Report Abuse

morning

Posted by tksw > 2016-03-24 09:01 | Report Abuse

what happened? Market opened drop 9 points

Posted by mamatede > 2016-03-24 17:52 | Report Abuse

Suncon can do it, so will Gadang