Kuala Lumpur-based property developer Radium Development Bhd has successfully filled its public tranche of the initial public offering (IPO) on the Main Market of Bursa Malaysia. The IPO is scheduled to list on May 31, 2023.
In a statement today, Radium said it received a total of 10,496 applications for 279,117,100 shares.
The public tranche consisted of 273,000,000 shares available for application by the Malaysian public at an issue price of RM0.50 per share.
Radium Development’s group MD Datuk Gary Gan Kah Siong, expressed appreciation for the public’s confidence in subscribing to the IPO despite challenging market conditions.
He said the funds raised from the IPO will enhance Radium’s growth prospects in tandem with the property sector’s recovery.
The company’s plans for 2023, include the completion of Vista Sentul and the launch of projects worth RM1.5 billion.
Gan said these initiatives will contribute to Radium’s earnings and enable them to fulfill their commitment of providing affordable homes to Kuala Lumpur’s working class.
The IPO is expected to generate RM434 million in proceeds, with RM171 million allocated for land acquisition and development expenses, RM109.3 million for hotel construction, RM93.9 million for repayment of bank loans, RM39.8 million for working capital, and RM20.0 million to cover listing expenses.
Radium focuses primarily on developing high-rise residential properties in Kuala Lumpur, including condominiums, serviced apartments, suite apartments, and SOHO units.
The company has delivered projects worth RM2.1 billion in gross development value, all of which were fully sold before 2020.
Independent market research indicates that Radium holds a 10% share of the high-rise residential properties market in Kuala Lumpur based on 2021 revenue and a 7% share based on the number of units.
Radium is set to be listed on the Main Market of Bursa Malaysia on May 31, 2023, with an issue price of 50 sen per share and a market capitalisation of RM1.7 billion.
Source: The Malaysian Reserve