Property developer Gold Li launches IPO at 13 sen to mainly fund Johor projects

KUALA LUMPUR (April 27): Gold Li Holdings Bhd, which mainly develops landed homes, has begun collecting applications for its initial public offering (IPO) on the ACE Market of Bursa Malaysia, seeking to raise up to RM19.5 million.

The IPO is priced at 13 sen per share, which comprises 117 million new shares and an offer for sale of 36 million existing shares, according to its prospectus launched on Monday. Overall, the group is offering up to a 25.5% stake in the company.

"This IPO is a strategic tool for the group to raise funds, gain public recognition and tap into the equity capital market for our future growth," executive director and chief operating officer Datin Lau Siew Yu said at the prospectus launch.

Founded in 1999, Gold Li focuses on landed residential developments and has completed 110 projects across Johor, mainly in Muar, Tangkak and Batu Pahat. The group also operates as its own main contractor.

As at present, Gold Li has 13 ongoing projects and 28 planned developments, with a combined gross development value (GDV) of about RM854.9 million.

Of these, the three ongoing projects and one of the planned developments will be partly funded by the proceeds from the IPO at RM11.21 million. The entire projects carry a GDV of RM42.43 million and a gross development cost of RM18.6 million.

By the first half of 2027, the group also expects to begin construction of the first high-rise residential project, also in Muar, as part of its broader plan to diversify its product offering, according to Lau. Gold Li still has about 47.3 acres of landbank across Johor.

For the financial year ended Jan 31, 2025 (FY2025) Gold Li recorded a net profit of RM7.84 million on revenue of RM65.03 million, translating into a gross profit margin of 26.5% and a net profit margin of 12.1%.

Upon listing, the group is expected to have a market capitalisation of RM78 million with a price to earnings ratio of 10 times based on the FY2025 earnings. The group does not have any dividend policy.

Proceeds from the offer for sale, meanwhile, will accrue entirely to the selling shareholders, namely managing director Datuk Lee Tiau Huat and Lau. Following the IPO, their combined shareholding will be diluted to 73.3%, mainly held through their investment vehicle Setia Mega Sdn Bhd, which will retain a 66.3% stake.

The IPO application period will close on May 5, with listing targeted for May 18.

M&A Securities Sdn Bhd is acting as adviser, sponsor, underwriter and placement agent for the exercise.

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