GDB pays RM81.6m for two builders, plans Kuching project

GDB Holdings Bhd, the contractor building the KL International Hospital and logistics hubs in Shah Alam and Klang, is paying RM81.6 million for 51% of two construction companies and asking shareholders to let it go into property development, starting with land in Kuching. It announced the package on 8 October 2026, together with a private placement, a rights issue with warrants and a share option scheme, and expects to finish it all in the first quarter of 2027.

The Kuching land

• Bought: about 6,961 sq m (about 74,900 sq ft, or 1.72 acres) in Kuching, Sarawak
• Identified: about 4,754 sq m more (about 51,200 sq ft, or 1.17 acres), also in Kuching
• Plan: a phased mixed-use project of serviced apartments, SOHO units and shops with a gross development value of about RM500 million, through a new subsidiary, GDB Development Sdn Bhd. The proceeds table names two schemes: a serviced residence, shop and SOHO development, and two towers with 300 serviced suites and shops
• Not disclosed: the lot numbers, where in Kuching the land is, and what it cost. GDB's balance sheet shows RM11.7 million of land held for development, all added in the first half of 2026, which its quarterly report describes as two parcels in Sarawak
• Who runs it: Ir. Lim Sow Wu, previously chief operating officer of Mah Sing Group (2016–2018) and OSK Property (2018–2024) and chief executive of CPI Land (2024–2025)
• Approval: because property is expected to take 25% or more of GDB's net assets or net profit, shareholders must approve the move at an EGM

The two builders

• Bina Tegas Sdn Bhd: 51% for RM66.51 million from Leong Chee Kit, Low Lip Kai and Tham Wai Leong. Revenue of RM47.2 million and a loss of RM0.37 million in the 12 months to June 2026 (unaudited), after a RM2.39 million profit the year before
• BT Borneo Engineering Sdn Bhd: 51% for RM15.09 million from the same three and Lim Khoon Sin. Revenue of RM25.0 million and a loss of RM1.5 million in the 12 months to June 2026. It owns 40% of BBJ & BT Development Sdn Bhd, a property company
• Price basis: RM160 million for 100% of both, or 8.89 times the guaranteed profit of about RM18 million a year, inside the RM149.1–173.9 million range set by Strategic Capital Advisory. It is about 7.3 times their combined net assets of RM21.9 million at June 2026
• Guarantee: the sellers promise at least RM45 million of combined profit after tax from July 2026 to December 2028 and an order book of RM400 million at the end of 2028. Their best year since 2023 was RM2.5 million
• Order book: RM265.68 million at June 2026, lifting the enlarged group's book to about RM741.81 million
• Payment: RM40.8 million in cash from the placement, and RM40.8 million in 96.91 million new GDB shares at 42.1 sen

The fundraising

• Placement: up to 309.38 million new shares, or 30% of the company, indicatively at 37.4 sen
• Rights issue: one new share for every seven held, each with a free warrant, indicatively at 33 sen. Acting group managing director Andy Lai Wee Young has undertaken to subscribe enough to raise at least RM30.03 million
• Total: RM70.83 million to RM183.48 million, of which up to RM37.74 million goes to property development, including RM7.5 million for more land or property investments
• Share price: GDB closed at 41.5 sen on 8 October, a market value of about RM423 million, The Edge reported

Still looking for a machinery yard

GDB still holds RM8 million of its listing proceeds set aside to buy land for storing its construction machinery. In February 2026 it extended the deadline for using it to 26 March 2028.