KUALA LUMPUR: Property developer Radium Development Bhd
has inked an underwriting agreement with Malacca Securities Sdn Bhd and CIMB Investment Bank Bhd in conjunction with its initial public offering (IPO) on the Main Market of Bursa Malaysia.
In a statement, Radium said its IPO exercise involves a public issuance of 868 million new shares, representing 25% of its enlarged share capital.
The company said its IPO is distinctive in that there is no offer-for-sale component, with all IPO proceeds channeled to the group.
The IPO proceeds will mainly go towards the acquisition of land bank and development expenditure, as well as hotel construction, in line with its business expansion plans.
Out of the 868 million new shares to be issued, 273 million shares will be made available to the Malaysian public via balloting and 60 million shares will go to eligible key senior management, employees of the group and business associates, including any other persons who contributed to the success of the group.
A further 435 million shares will be offered by way of private placement to selected Bumiputera investors approved by Ministry of International Trade and Industry; and the remaining 100 million shares will be allocated to selected investors by way of private placement.
Malacca Securities is the principal adviser, managing underwriter and joint placement agent of the Radium IPO, while CIMB Investment Bank is the joint underwriter and joint placement agent.
"Radium has built a solid reputation for delivering affordable homes for the working class in Kuala Lumpur.
"This has resonated with our target market, as Radium has no units available for sale across all launches pre-2020 and are looking to continue our trajectory with RM1.5bil worth of new launches in 2023," said Radium group managing director Gary Gan Kah Siong.
Radium is slated to list on the Main Market in the second quarter of 2023.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
