Gagasan Nadi Cergas MD trims stake to 57%

KUALA LUMPUR (March 17): Gagasan Nadi Cergas Bhd group managing director Datuk Wan Azman Wan Kamal has sold a 7.44% stake in the property and construction company, reducing his deemed interest in the company to 57.25% from 64.69%.

The stake, comprising 56 million shares, was disposed of on March 13 at 43 sen each, according to the company's bourse filing on  Monday.

Based on the transacted price, Wan Azman is expected to have pocketed RM24.08 million from the sale.

Last month, Gagasan Nadi Cergas proposed a bonus issue on the basis of one warrant for every two shares held. The exercise involves the issuance of up to 376.5 million warrants, with a five-year tenure, carrying an exercise price of 32 sen apiece.

Based on the exercise price, the proposed warrants could raise up to RM120.48 million upon full conversion, which the company intends to utilise for working capital, primarily for payments to suppliers and subcontractors for the purchase of materials and progress claims for work done.

Listed on Bursa Malaysia’s ACE Market in 2018, Gagasan Nadi Cergas is targeting a transfer to the Main Market this year.

Gagasan Nadi Cergas is trading at a price-earnings ratio of 4.3 times, substantially lower than its peers such as Nestcon Bhd (28.4 times), Gamuda Bhd (24.4 times), Sunway Construction Bhd (24.7 times), according to AskEdge data.

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