Serba Dinamik bags RM7.7b contract to build facilities in UAE


SHARES of Serba Dinamik Holdings Bhd surged as much as 15% after the group announced it had bagged a US$1.78 billion (RM7.7 billion) contract to build academic-related facilities and information technology (IT) infrastructure in the United Arab Emirates (UAE).

The stock ended yesterday 9.09% or 14 sen higher at RM1.68 after hitting an intraday high of RM1.77, while the FTSE Bursa Malaysia KLCI closed 1.18% stronger.

The engineering services company’s wholly-owned subsidiary, Serba Dinamik International Ltd, had on April 12 received and accepted a letter of award from Block 7 Investments LLC to undertake among others, the engineering, procurement and construction of an innovation hub, academic campus, related facilities and IT infrastructure in Abu Dhabi, UAE.

The project covers the innovation hub, which includes the development of offices, restaurants, exhibition centres and IT centres, an academic campus and accommodations which include apartments and hotels. It has a total build-up area of 455,000 sq m.

“The project forms part of Block 7’s initiatives to create a global incubator for the advancement of innovators for the technology, property, financial and energy sectors, to be positioned as a new landmark for Abu Dhabi,” Serba Dinamik told Bursa Malaysia yesterday.

The scope of work includes the design, engineering, procurement, supervision, management, supply, transportation, construction, commission and remedying of any defects in connection with the project.

“The award is conditional on finalising and executing of contract documents and both parties agree- ing to the effective date of the works as of May 14, 2020,” the group added.

The project is expected to complete within four years from the commencement date of May 14, 2020.

The project is anticipated to contribute positively to Serba Dinamik’s net assets, consolidated earnings and earnings per share for the financial year ending Dec 31, 2020.

“The board opine that the award is in the best interest of the company and it signifies the positioning of the group’s ability in the development of innovation hubs and the contents of digital frontier technology,” it said.

This follows Serba Dinamik’s batch of contract wins announced in February this year, comprising 12 new local and overseas projects.

Of the 12 projects, six contracts are for projects in Oman and Indonesia worth US$78 million while the others are call-out basis projects.

Kenanga Investment Bank Bhd had said the contract wins announced in February would bring the group’s orderbook to RM10.7 billion (40% local and 60% overseas).

As at Nov 2019, the firm’s orderbook stood at circa RM10 billion. Serba Dinamik founder and group MD/CEO Datuk Dr Mohd Abdul Karim Abdullah said the group targets to grow this to RM15 billion by end-2020.

For the contracts totalling US$78 million, one was secured in Oman by Serba Dinamik International, while the remaining five were secured by its 75%-owned indirect subsidiary PT Serba Dinamik Indonesia.

The scopes of work for the projects in Oman and Indonesia include operations and maintenance (O&M), engineering, procurement, construction and commissioning, and other products and services.

Meanwhile, the call-out basis contracts were secured by the group’s wholly-owned subsidiary Serba Dinamik Sdn Bhd, involving five O&M contracts as well as one for other products and services.