( Vasantha Ganesan )
COURIER service provider GD Express Carrier Bhd (GDEX) is offering 35 million new shares of 10 sen each at an issue price of 30 sen in conjunction with its listing on the Malaysian Exchange of Securities Dealing and Automated Quotation Bhd Market of Bursa Malaysia Bhd.
The listing will raise RM10.5 million, the bulk of which is allocated to upgrade processes and network development.
“The trend in the industry indicates that expectations of customers are getting higher. Thus, the business model has to be upgraded. That’s why we are going for listing,” managing director Teong Teck Lean said.
Teong was speaking to reporters after the signing of an underwriting agreement with its adviser, sponsor, underwriter and placement agent OSK Securities Bhd.
Chief executive officer, corporate finance OSK Securities Hugh Loh said that prospects for the express carrier industry in Malaysia appear favourable.
Services provided by GDEX include express service (24-hour deliveries domestic), diplomatic service (same day express), bulk service, freight services and customised logistics solution services.
Under the flotation exercise, a total of two million shares will be made available to the public, 28 million shares will be distributed via private placement to identified public investors and five million to eligible directors and employees of the GDEX group.