The company, which now has a 4% market share, will use half of the RM10.5 million proceeds from the listing exercise to upgrade its facilities and services.
“The IPO proceeds will be utilised to finance GDEx expansion in the area of upgrading its quality processes, and improving its infrastructure and network further,” its chairman Datuk Ahmad Sufian said at the company’s debut on the exchange.
Managing director Teong Teck Lean said: “To enable good delivery, your whole distribution network has to communicate well and be synchronised. In order to reinforce this, you need to continue to upgrade.”
Teong said the GDEx would expand its customised logistical solutions systems, which are offered to 10 customers and two banks.
“A lot of companies are looking to outsource their logistical and mailroom needs as these are not their core businesses.”
“We have the economies of scale to do it, and we are definitely one of the pioneers in the sector in providing such services. I see this (sector) increasing this year,” he said.
Although GDEx intends to focus on manageable growth in the domestic market, which posted an average compound growth of 40% over the last three years, the company will also look to regional expansion within the next five years.
“Thirty percent to 40% growth is a big thing to handle, (but) in the future there are plans to go beyond our shores because if international companies can come here, I don’t see why we can’t do the same over there,” Ahmad said.
GDEx made its debut with a 2.5 sen premium over its offer price of 30 sen. The counter closed at 40 sen with 21 million shares done.
“Given the current market sentiment, we’re very happy with the opening price. The IPO allows us to get on with the business and gives the public an awareness of what we do,” Ahmad said.