KUALA LUMPUR (April 16): Serba Dinamik Holdings Bhd piqued the interest of investors this morning after it clinched a US$1.78 billion (RM7.71 billion) contract for the engineering, procurement and construction of an innovation hub, academic campus, related facilities and information technology (IT) infrastructure in Abu Dhabi, the United Arab Emirates (UAE).
The counter, earlier this morning, rose as much as 12.5% to RM1.89, before paring some of its gains and was up 15 sen or 8.93% at RM1.83 at 10.33am. Some 23.82 million shares were traded, higher than its 200-day average volume of 6.44 million, making it one of the top actively traded counters on Bursa Malaysia today. This brings its market capitalisation to RM5.64 billion.
Year to date, the counter has fallen some 17% from RM2.20.
Serba Dinamik warrants also rose as much as 2.5 sen or 8.93% to 30.5 sen, with 101.85 million shares traded to become the bourse’s second most actively traded entity.
The firm’s wholly-owned Serba Dinamik International Ltd (SDIL) accepted the letter of award on Sunday from US-based Block 7 Investments LLC for the four-year project, which is set to commence on May 14, according to a filing to Bursa Malaysia yesterday.
“The project shall cover three areas of interest, namely the innovation hub, academic campus and accommodation comprising apartments and hotels, over a total built-up area of 455,000sqm. The innovation hub development will include offices, restaurants, and exhibition and IT centres,” said Serba Dinamik, adding that the award is expected to contribute positively to SDIL’s financials for the financial year ending Dec 31, 2020.