Main-Market-bound Radium Development says public tranche of IPO portion fully subscribed

• Ahead of its listing on Bursa Malaysia’s Main Market on May 31, the group said in a statement, that it received a total of 10,496 applications for 279.12 million shares at an issue price of 50 sen per share.

KUALA LUMPUR (May 19): Property developer Radium Development Bhd said the public tranche of 273 million shares for its initial public offering (IPO) made available for the Malaysian public has been fully subscribed.

Ahead of its listing on Bursa Malaysia’s Main Market on May 31, the group said in a statement, that it received a total of 10,496 applications for 279.12 million shares at an issue price of 50 sen per share.

Radium will raise RM434 million in proceeds from its IPO, of which RM171 million is earmarked for acquisition of landbank and development expenditure, and RM109.3 million for hotel construction.

Meanwhile, a further RM93.9 million is allocated for repayment of bank borrowings, RM39.8 million for working capital and the remaining RM20 million to defray listing expenses.

The exercise comprises a public issuance of 868 million new shares, or 25% of its enlarged share capital of 3.47 billion shares. Its expected market capitalisation is RM1.73 billion upon listing.

“The proceeds from our IPO would better position Radium to grow alongside the recovery of the property segment,” said its managing director Datuk Gary Gan Kah Siong.

“2023 is poised to be an eventful year, as we are on track to deliver Vista Sentul in mid-year and will ramp up sales for RM1.5 billion launches. These launches will boost our earnings even further, and enable us to continue to make good our promise to deliver affordable homes for the working class in Kuala Lumpur,” he added.

Malacca Securities is the principal adviser, managing underwriter and joint placement agent for the IPO, while CIMB Investment Bank is a joint underwriter and joint placement agent.