News & Articles Radium to raise RM434mil to fuel its development efforts
Radium to raise RM434mil to fuel its development efforts
2 May 2023
Radium Development Bhd plans to raise RM434 million in its upcoming initial public offering (IPO) on Bursa Malaysia's Main Market to fund future development.
The Kuala Lumpur-based property developer released its prospectus today. May 31 is the proposed listing date.
Radium group managing director Datuk Gary Gan said that the company intends to use RM171 million, or 39.4 percent of the funds from its IPO, for land acquisition and project development in Kuala Lumpur, and RM109.3 million, or 25.2 per cent, for hotel construction.
The remaining funds will be used for the repayment of bank borrowings (RM93.9 million), working capital (RM39.8 million) and to defray listing expenses (RM20 million).
"All the money generated from this IPO goes towards growing the company. The promoters or substantial shareholders will not pocket anything from this exercise," he told the media after launching its prospectus today.
The IPO exercise involves the public issuance of 868 million new shares. There is no offer-for-sale component in the company's IPO.
The new shares represent 25 per cent of the company's enlarged share capital at RM0.50 a piece. The company's current issued share capital consists of 2.6 billion shares, which will be enlarged to 3.47 billion following the IPO.
Gan said Radium is bullish of future success, because many of its previous projects have shown full take-up rates for launched units.
Past initiatives include the Vista OUG PPAM, Vista OUG Residensi Wilayah, and Vista Semarak Residensi Wilayah affordable housing developments.
To date, the company has completed projects worth RM2.1 billion in gross development value.
The majority of the homes sold by the company are priced between RM300,000 and RM600,000.
Gan said that the company had formed a joint venture to potentially launch a development in Mukim Batu in the first half of 2024.
"In the third quarter of 2023, we will unveil our largest undertaking yet, Residensi Desa Timur in Salak South, Kuala Lumpur, with nearly RM1billion GDV (gross development value)," he said.
This undertaking would complement the company's recent project, The Chancery, on Jalan Ampang that was launched in February 2023.
"The Chancery will notably include five floors of hotel, which we are allocating RM109.3 million from our IPO proceeds to construct," he said.
The Kuala Lumpur-based property developer released its prospectus today. May 31 is the proposed listing date.
Radium group managing director Datuk Gary Gan said that the company intends to use RM171 million, or 39.4 percent of the funds from its IPO, for land acquisition and project development in Kuala Lumpur, and RM109.3 million, or 25.2 per cent, for hotel construction.
The remaining funds will be used for the repayment of bank borrowings (RM93.9 million), working capital (RM39.8 million) and to defray listing expenses (RM20 million).
"All the money generated from this IPO goes towards growing the company. The promoters or substantial shareholders will not pocket anything from this exercise," he told the media after launching its prospectus today.
The IPO exercise involves the public issuance of 868 million new shares. There is no offer-for-sale component in the company's IPO.
The new shares represent 25 per cent of the company's enlarged share capital at RM0.50 a piece. The company's current issued share capital consists of 2.6 billion shares, which will be enlarged to 3.47 billion following the IPO.
Gan said Radium is bullish of future success, because many of its previous projects have shown full take-up rates for launched units.
Past initiatives include the Vista OUG PPAM, Vista OUG Residensi Wilayah, and Vista Semarak Residensi Wilayah affordable housing developments.
To date, the company has completed projects worth RM2.1 billion in gross development value.
The majority of the homes sold by the company are priced between RM300,000 and RM600,000.
Gan said that the company had formed a joint venture to potentially launch a development in Mukim Batu in the first half of 2024.
"In the third quarter of 2023, we will unveil our largest undertaking yet, Residensi Desa Timur in Salak South, Kuala Lumpur, with nearly RM1billion GDV (gross development value)," he said.
This undertaking would complement the company's recent project, The Chancery, on Jalan Ampang that was launched in February 2023.
"The Chancery will notably include five floors of hotel, which we are allocating RM109.3 million from our IPO proceeds to construct," he said.
Source: NST.com.my
Latest Posts
-
LBS signs MoU for 10GW green hydrogen project in Sabah
-
Milla Residence sedia tempat letak kereta automatik canggih
-
RHB Research positive on Kerjaya Prospek citing robust job flow pipeline
-
Kerjaya Prospek, Aspen Vision bangun tanah 33.52 hektar di Pulau Pinang
-
Matrix Concepts dinobat antara 10 pemaju hartanah terbaik Malaysia