KUALA LUMPUR: GD Express Carrier Bhd (GDex) is exploring its options to raise about RM200 million in the next 12 months to “speed up” the express delivery company’s plans to expand its footprint into the Southeast Asian region.

“We are looking at possibilities for aggressively expanding to the whole Asean region, look at how to raise additional capital through borrowings or other instruments,” managing director Teong Teck Lean told reporters after the company’s annual general meeting (AGM) yesterday.

Teong added that GDex is also considering the option of issuing new shares of up to 10% of the GDex’s issued share capital to raise the necessary funds as the resolution to do so has just been approved by shareholders at the AGM.

GDex is expected to use the new capital as well as its existing cash pile of RM41.38 million as at Sept 30, 2014, to support the setting up of its ground operations in Indonesia, making it the third country where the company has “full-fledged” operations in.

Currently, GDex only has a representative office in Jakarta, set up to manage shipments to and from the country and to study the Indonesian market before ground operations are set up there.

Even with the additional funds raised, Teong said it will take at least two to three years before GDex can have a foothold in Indonesia. However, he does not rule out the possibility of forming partnerships with regional operators which already have presence in Indonesia.

“We are preparing ourselves for the expansion. Failing the two or three years [timeline], I would consider myself a failure. It has to happen...our growth catalyst will have to come from this regional expansion,” he continued.

Apart from Indonesia, GDex has operations in Malaysia and Singapore. It also boasts Singapore Post Ltd as a substantial shareholder, holding a sizable 25.81% stake in the company.

On the domestic front, GDex is also not resting on its laurels. The company controls an estimated 15% share of the express delivery market in Malaysia and has kept a steady compound annual growth rate of 17% for its topline.

Despite that, the company is aiming to further expand its fleet of delivery trucks, double its package handling capacity at its warehouse and increase the number of last mile delivery personnel in the next year.

Specifically, Teong said GDex had set aside RM15 million to RM20 million for capital expenditure for the financial year ending June 30 2015 (FY15). The company is aiming to increase its fleet by another 100 trucks for FY15 and increase its capacity to handle at least 150,000 packages per day due to the increase in demand for its services.

This article first appeared in The Edge Financial Daily, on December 4, 2014.