Tambun Indah IPO oversubscribed nearly 15 times

KUALA LUMPUR: Tambun Indah Land Bhd (Tambun Indah), a property developer in Penang, saw its initial public offering (IPO) of 11.05 million shares oversubscribed by 14.9 times.

The company received 10,751 applications for 175.7 million shares with a total value of RM123 million, it said in a press statement on Monday, Jan 10.

"We are extremely pleased with the oversubscription for our IPO, as this is a strong indication of investors' confidence in our track record and capabilities as a niche property developer in bringing innovative concepts and building high-quality homes in Mainland Penang," said managing director Teh Kiak Seng.

Teh also expressed his confidence that the property market in Mainland Penang will continue to see positive prospects, particularly as property investors are seeking high-value properties with high capital appreciation potential.

Some RM22.4 million is expected to be raised from the IPO of which RM12.70 million will be allocated for working capital, RM7.10 million for repayment of borrowings and the remaining RM2.60 million to defray listing expenses.

Tambun Indah's IPO consists of a public issue of 32 million new ordinary shares and an offer-for-sale of 22.1 million vendor shares at an IPO price of RM0.70 each. The latter will be allocated for placement to identified Bumiputera investors.

Of the 32 million new ordinary shares under the public issue, 11.05 million shares were allocated for the Malaysian public; 11.05 million shares for eligible directors, employees and business associates of the company and 9.9 million shares for private placement.

Tambun Indah which was founded in 1994, has been bringing innovative concepts to Mainland Penang, including the first gated and guarded community of Taman Tambun Indah and the first gated strata landed homes of Palm Villas.

The developer has sold more than 2,800 units of residential property with a total gross development value (GDV) of more than RM800 million. Presently, Tambun Indah has a GDV of RM1 billion in the pipeline until 2016.

MIMB Investment Bank Bhd is the adviser, sole underwriter and placement agent for Tambun Indah's IPO exercise.