Think from positive side. The last PP was done on April of 2016. Refer to annual results, FY2016, FY2017 and FY2018 are the best consecutive results to Gadang in the past many years (profit >90m).
The issue price of the Placement Shares shall be determined and fixed by the Board at a later date (“Price Fixing Date”), after the receipt of Bursa Securities’ approval for the Proposed Private Placement.
The Placement Shares will be priced at not more than 10% discount to the 5-day volume weighted average market price (“5D-VWAP”) of Gadang Shares immediately before the Price Fixing Date.
For illustrative purposes, the 5D-VWAP of Gadang Shares up to and including the LPD is RM0.8241 per Gadang Share. Hence, for the purpose of this announcement, the indicative issue price of the Placement Shares is assumed as RM0.75 per Gadang Share, representing a discount of approximately RM0.0741 or 8.99% to the 5D-VWAP of Gadang Shares up to and including the LPD.
Based on the above, they will purposely push down the price so that the price get lower, I don't think they will push up the price within this period of time. Besides, post PP will drop even further, just refer to JAKS.
THE financial year ending May 31, 2019 (FY19) has been relatively uneventful for Gadang, as it secured new orders amounting to RM136mil as compared to RM475mil in FY18.
The new orders comprised two Tun Razak Exchange (TRX) packages and a fire fighting facility for Rapid Pengerang.
The group’s outstanding construction order book stood at RM1.3bil compared to RM1.6bil a year ago.
The management highlighted that it has been focusing on completing existing jobs to ride out the period of uncertainty.
It is noteworthy that the upcoming completion of the Rapid contract is in June, where Gadang has submitted a variation order that could be recognised in the first half of FY20, if approved.
and will take up a 10% stake in the company for RM18mil.
The group views this as a strategic move as it allows both companies to leverage on each other’s strength to improve their chances in tenders.
Additionally, Gadang noted its interest in participating in the pre-qualification tender for the East Coast Rail Link, as well as tenders for further TRX, Rapid and hospital projects in order to replenish its construction order book.
As for its property division, Gadang’s unbilled sales stood at RM93mil as at Feb 2019, down from RM134mil last year, with only one new launch in Dec 2018 – Putra Perdana which has a gross development value of RM173mil.
Gadang has also revised the joint-venture terms for its Capital City project in Johor Bahru, where it is the landowner.
The revised terms, if approved, could see the company realising RM100mil worth of contra properties as balance payment for its revised RM250mil entitlement sum.
those already qualify in 2017 pre qualifying tender doesn't need to tender again as stated in the star newspaper last week.( Econpile also already qualify)
look at DWL chart, from 70 plus sen to RM2.00 and back to 70 plus sen in a month.....that's very impressive.....gadang is having paper loss now.....bad trader huh.....
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Posted by speedlikecy > 2019-05-09 11:11 | Report Abuse
should make the price up, so gadang pp can get more money for business.