The Star - GD Express to raise RM10.5mil from IPO
Mar 11, 2005
( Yeow Pooi Ling )
GD Express Carrier Bhd expects to raise RM10.5mil from its proposed initial public offering and to use the proceeds to upgrade its courier processes and network development, managing director Teong Teck Lean said.
The company, which is seeking a listing on the Mesdaq market of Bursa Malaysia, will be issuing 35 million new 10 sen shares at an issue price of 30 sen each, of which 28 million will be for private placement, five million for the company's directors and employees and the remaining two million for the public.
"We will be focusing more on network development to ensure the same level of service and operational efficiency in the cities as well as in the smallest and most remote town," Teong told reporters after the company signed an underwriting agreement with OSK Securities Bhd in Petaling Jaya yesterday.
The express carrier had about 3% to 4% share of the courier market estimated to be worth RM1bil, he said, adding that "there is much potential for growth."
GD Express has put in place an online tracking system that is connected to more than 70 outlets nationwide and which is serviced by a fleet of over 150 delivery trucks. Its corporate and institutional customers constitute 20% of its total client base.
OSK Securities head of corporate finance Hugh Low said the industry had been growing at 6% annually from 2002 to 2004. "GD Express achieved a compounded annual growth rate of 40% during the same period," he said. The listing prospectus is expected to be launched next month. OSK Securities is the adviser, sponsor, underwriter and placement agent for the exercise.