Radium Development to raise RM434mil via IPO en route to main market listing

KUALA LUMPUR: Radium Development Bhd (Radium), a Kuala Lumpur-centric property developer, has launched its prospectus today in conjunction with its proposed May 31 listing on Bursa Malaysia’s Main Market.

The company eyes to raise RM434 million from the initial public offering (IPO) with a view to reinforce its Kuala Lumpur presence mainly by shoring up its land bank for future development.

Radium group managing director Datuk Gary Gan said all of the company’s projects are located in Kuala Lumpur and that they were fully snapped up, even those launched at the height of the COVID-19 pandemic in 2020.

“We are earmarking RM171 million from our IPO proceeds for land acquisition and project development in Kuala Lumpur,” Gan told the media after launching its prospectus today.

“For a start, we have entered into a joint venture agreement to potentially launch a development in Mukim Batu in the first half of 2024. We have also shortlisted three parcels of land in Mukim Petaling to acquire and jointly develop,” he said.

This underscores the company’s commitment as a Kuala Lumpur-centric developer focussing on affordable housing ranging between RM300,000 and RM600,000.

Of the total RM434 million IPO proceeds, RM171 million has been earmarked for land acquisition and development expenditure and RM109.3 million for hotel construction, Radium said in a statement.

“A further RM93.9 million has been allocated for repayment of bank borrowings, RM39.8 million for working capital, and the balance RM20 million to defray listing expenses.

“Radium’s IPO exercise involves a public issuance of 868 million new shares, representing 25 per cent of its enlarged share capital at RM0.50 per share. There is no offer-for-sale component and all proceeds are to be channeled to the group,” it said.

The company also said that it would like to set a dividend policy of “no less than 30 per cent” of consolidated profits after taxation.

Applications for Radium’s IPO is currently open and ends on May 16, 2023 at 5 pm.

Malacca Securities Sdn Bhd is the principal adviser, managing underwriter and joint placement agent, while CIMB Investment Bank Bhd is the joint underwriter and joint placement agent. – Bernama

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