GDB says no authorised investment scheme promising 20% return

KUALA LUMPUR (Feb 16): Construction services outfit GDB Holdings Bhd (KL:GDB) clarified on Monday that it has not issued, authorised or circulated any share investment scheme promising investors a 20% annual return.

The clarification follows a report in The Edge Malaysia (Feb 16-22, 2026 edition) which cited a term sheet purportedly outlining a 12-month investment structure guaranteeing principal and a 20% return, payable entirely in shares.

GDB said that after making due enquiry with its directors and major shareholders, the board wishes to clarify that no such investment schemes or term sheets were issued, authorised or circulated by the company.

“Shareholders and investors are advised to exercise caution and to refrain from speculative trading in the company’s securities,” GDB said. It added that the group remains focused on its operations and strategic developments, reminding stakeholders that all official corporate updates are communicated via Bursa Malaysia and its official website.

Over the weekend, The Edge Malaysia, citing people familiar with the matter and the term sheet, reported that certain new major shareholders were circulating a proposed investment structure requiring a minimum RM10 million commitment, with returns settled entirely through share transfers via direct business transactions (DBT).

Under the described arrangement, investors would acquire GDB shares at the five-day volume-weighted average price (VWAP), with both principal and returns to be fulfilled in shares rather than cash. The structure also reportedly included a buyback option at the end of a 12-month tenure, subject to agreed terms.

The term sheet stated that any shortfall at maturity would be covered by additional shares or funds within a month. The term sheet is explicitly non-binding, with final legal agreements expected only after mutual acceptance.

Incorporated in 2013, GDB is principally involved in construction services, focusing on high-rise residential, commercial and mixed-use development projects as a main contractor and principal works contractor.

GDB’s shares settled half a sen or 1.27% lower at 39 sen at noon break on Monday, giving the company a market capitalisation of RM397.16 million. Year to date, the stock remains up more than 8%.

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