Gabungan AQRS: IPO proceeds for expansion

Construction and property developer, Gabungan AQRS Bhd, will utilise about RM73.16 million from the proceeds of its
initial public offering for expansion activities.

Chief
executive officer Alvin Ng Chun Kooi said about RM30.46 million would
be allocated for working capital, RM25 million to acquire new land
bank, RM12 million to acquire a corporate headquarters and the
remaining RM5.7 million would be used for listing expenses.

He
said the company, enroute for listing on the Main Market of Bursa
Malaysia Securities by end-July, envisaged various expansion and growth
plans.

"This includes venturing into government-initiated
public-private sector partnership (PPP) projects, expansion into new
geographical markets overseas and developing further our property
development," he said in a statement.

Gabungan AQRS today
launched its prospectus for the public issue of 62 million new ordinary
shares of 25 sen par value and an offer for sale of 30 million ordinary
shares of 25 sen par value at a price of RM1.18 per share.

Ng
said with the company's listing and access to the capital market, it
would have the financial resources to be in a position to actively
participate in building and infrastructure related PPP projects.

"To
further expand the construction business, we will also leverage on the
distinction of wholly-owned subsidiary, Gabungan Strategik Sdn Bhd, in
the Industrial Building System (IBS) construction method which the
government is promoting as an alternative to the labour intensive
conventional construction
method.

"In property development,
Gabungan AQRS will be on the lookout to acquire new land banks in
strategic locations for commercial or residential development.

"But,
as a lifestyle developer, we are not eyeing large tracts of land which
accounts for its current land bank of only 13 hectares," Ng added.

The offer period to subscribe for Gabungan AQRS IPO will commence today until July 13. -- BERNAMA