KUALA LUMPUR: GDB Holdings Bhd proposed a one-for-two bonus issue involving 312.5 million new shares.
This will increase GDB’s share base from 625.0 million shares to 937.5 million.
Its share capital would remain at RM62.6 million, GDB said in a statement today.
GDB also proposed to undertake a bonus issue of two warrants for every five existing shares held by shareholders on the same entitlement date to be determined later.
Assuming the full exercise of warrants, the bonus issue of warrants will result in the issuance of 250.0 million new shares in GDB, and further increase the group’s share base to 1.19 billion.
This will expand GDB’s share capital to RM197.6 million.
The company said the indicative warrant exercise price would be 54 sen apiece, a discount of about 33.96 per cent based on GDB’s five-day volume weighted average market price.
The full exercise of the warrants may potentially raise up to RM135.0 million in proceeds within the five-year tenure for working capital purposes.
As at December 31 last year, GDB had about RM2.1 billion outstanding orderbook.
This consisted mainly of construction works for AIRA Residence in Damansara Heights, Perla Ara Sentral in Ara Damansara, Park Regent in Desa ParkCity, Hap Seng Star Mercedes-Benz Autohaus in Setia Alam, Hyatt Centric Hotel in Kota Kinabalu, Sabah, and 8 Conlay in Kuala Lumpur.
The company said revenue from these works would be recognised till the third quarter of 2023.
Group managing director Cheah Ham Cheia said the company had completed the construction of AIRA Residence on March 11, ahead of the contractual completion date.
“This lends credence to GDB’s commitment and capability in delivering projects ahead of schedules. We are optimistic of making encouraging headway in our current works in hand,” he said in the statement.
He said GDB had set a target to win RM500 million worth of new jobs in 2021.
Currently, its tender book stands at RM1.3 billion.