KUCHING: Serba Dinamik Holdings Bhd’s (SDHB) new warrants made another impressive gain on its second day trading on Bursa Malaysia yesterday.

The warrants opened 30 sen higher at 60.5 sen, which was the limit up price for the day. On Friday, the free warrants were traded at limit up price of 30.5 sen. Serba opened unchanged at RM2.04 yesterday.

The warrants were actively traded between 60.5 sen and 44 sen and settled at 53 sen, up 22.5 sen or 73.77 percent, with some 29.6 million units changed hands at lunch break. At 53 sen, Serba Dinamik warrants have a market capitalisation of RM466.98 million while Serba Dinamik’s market capitalisation stood at RM6.26 billion based on the stock’s price of RM2.03 at mid-day.

The warrants, which have a tenure of five years, have an exercise price of RM2.62.

Serba Dinamik issued a total of 881.1 million free warrants on the basis of two warrants for every five subdivided shares. The company has undertaken a share split involving the subdivision of every two existing ordinary shares.

To reward the shareholders, the company has also completed a bonus issue on the basis of two bonus shares for every five subdivided shares.

According to Serba Dinamik, the company could raise gross proceeds of more than RM2.3 billion if all the warrant holders exercise their warrants.  

Headed by group managing director and CEO Datuk Mohd Abdul Karim Abdullah, Serba Dinamik’s core business include maintenance, repair and overhaul of rotary equipment for domestic and overseas clients in numerous countries.

The group provides engineering services and solutions for oil and gas production platforms, refineries as well as plants for petrochemical manufacturing and liquefied natural gas.

It also undertakes engineering, procurement, construction and commissioning works on plants, facilities, road infrastructure and buildings and other related systems and solutions, including the design and installation of process control and auxiliary power generation.  

Meanwhile, Eco World Development Group Bhd’s (EcoWorld) subsidiary Melia Spring Sdn Bhd has entered into a conditional sale and purchase agreement with River Retreat Sdn Bhd to acquire the New Land for a base price of RM304.92 million.

The New Land is located in Iskandar Puteri next to EcoWorld’s Eco Botanic township, the group’s first township project in Iskandar Malaysia.

EcoWorld proposes to develop the New Land, which will have an aggregate land area of 200 acres, into a mixed residential and commercial township suitable for both first-time home buyers and the M40 group.

Separately, EcoWorld has signed a conditional development agreement with Permodalan Darul Ta’zim Sdn Bhd (PBT) where PBT agreed to nominate Melia Spring to purchase the New Land from River Retreat. PBT is a company controlled by the Johor state government, EcoWorld said in a filing with Bursa Malaysia.

“The proposed land acquisition came at an opportune time for EcoWorld Malaysia to replenish its landbank in Iskandar Malaysia.

“Since 2014, the group has not acquired any new landbank down south — instead it has focused on developing its existing four townships and three business parks there which have all performed tremendously well. This is evidenced by the RM6.3 billion cumulative sales recorded from FY2014 to FY2019 by EcoWorld Malaysia from its Iskandar Malaysia projects alone.

“The New Land’s strategic location immediately adjacent to Eco Botanic makes it a particularly compelling acquisition for the group.

“The proposed land acquisition also comes with attractive payment terms. With 98 percent of the base price payable over a 7-year period to match the expected development tenure and commencing from the second anniversary of the launch date, this will minimise the initial cash outlay required from EcoWorld Malaysia. The relatively low interest rate offered by the vendor will further help to reduce holding costs,” it added.

EcoWorld said the group planned to develop the New Land into a mixed residential and commercial township with preliminary estimated gross development value (GDV) of RM1.67 billion.

A large component of the development will comprise relatively affordable products suitable for first-time house buyers and the M40 target group.

This, according to EcoWorld, is in line with its recently announced plans to introduce a new range of homes priced from RM300,000 to RM450,000 shortly to take advantage of the outstanding infrastructure and lifestyle amenities already in place at its various projects, which include Eco Botanic.