PETALING JAYA: Kuala Lumpur-centric property developer Radium Development Bhd’s public tranche of its initial public offering (IPO) in conjunction with its forthcoming listing on the Main Market of Bursa Malaysia has been fully subscribed.
The group received a total of 10,496 applications for 279,117,100 shares. The public tranche entailed 273,000,000 shares for application by the Malaysian public at an issue price of 50 sen each.
Radium group managing director Datuk Gary Gan Kah Siong said, “Gaining the confidence for the public tranche is commendable given the challenging macroeconomic outlook and market sentiment.
“The proceeds from our IPO will better position Radium to grow alongside the recovery of the property segment.
“This year 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.”
Radium’s IPO will raise RM434 million, of which RM171 million is earmarked for acquisition of landbank and/or development expenditure, and RM109.3 million for hotel construction. A sum of RM93.9 million is allocated for repayment of bank borrowings, RM39.8 million for working capital and the balance of RM20 million for defraying listing expenses.
Radium specialises in developing high-rise residential properties, including condominiums, serviced apartments, suite apartments and small office-home office units. Since its incorporation, the group has delivered projects worth RM2.1 billion in gross development value.
The projects have received positive market acceptance from homebuyers, with all projects launched before 2020 being fully sold.
According to an Independent Market Research report prepared by Smith Zander, Radium holds 10% share of the high-rise residential properties market in Kuala Lumpur based on 2021 revenue, and 7% of the same market based on number of units.
Radium is set to be listed on the Main Market of Bursa Malaysia on May 31 2023, at an issue price of 50 sen per share and market capitalisation of RM1.7 billion.
