KUALA LUMPUR (Oct 8): Property developer Paragrene Land Bhd is to float on the Main Market of Bursa Malaysia, with the funds raised from the exercise to be used to pay for project development expenses.
According to the company’s draft initial public offering (IPO) prospectus posted on the Securities Commission Malaysia website, 153.65 million shares will be offered to the investing public.
Of this, 23.60 million shares will be available for application by the Malaysian public, and 42.55 million shares will be made available by way of private placement to selected investors.
The remaining 87.50 million shares will be made available to identified Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
Paragrene Land will also offer for sale another 60 million of its existing shares to identified Bumiputera investors approved by the MITI.
The issue price has yet to be fixed, according to the draft prospectus.
Other than funding its project development expenses, Paragrene Land also plans to fund its working capital from the proceeds raised from the IPO.
Paragrene Land’s history can be traced back to 2007, when it acquired land parcels totalling 53.73 acres in Puchong South, Selangor. All of its completed development projects are situated on these parcels of land.
The company has completed projects comprising 1,030 units of residential properties that span across a total land area size of 47.15 acres. Collectively, this translated into a gross development value (GDV) of RM571.67 million.
Paragrene Land’s ongoing development projects includes both residential and mixed-use developments on a total land area size of 24.24 acres, with an estimated total GDV of RM1.98 billion.
In addition, the company has a future development project which is expected to be launched in the first quarter of next year. Dubbed GreneForest City, the project has an estimated total GDV of RM3.2 billion.
Paragrene Land’s financial year ends on Dec 31. In FY20, it registered an annual net profit of RM18.93 million, 142% higher than RM7.82 million in FY19, as revenue increased to RM132.95 million from RM128.73 million. In FY18, the group posted a net profit of RM12.07 million on revenue of RM142.36 million.
Over the last three years, the company’s profit-after-tax margin also improved to 14.24% in FY20, from 6.08% in FY19 and 8.48% in FY18.
MIDF Amanah Investment Bank Bhd is the principal adviser for the IPO exercise.
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