PETALING JAYA: Radium Development Bhd
, en route to a Main Market listing on May 31, has restated its focus on developing properties only within the city of Kuala Lumpur.
Managing director Datuk Gary Gan Kah Siong said the property developer maintains a disciplined approach by focusing primarily on developments in Kuala Lumpur, demonstrating a strong commitment to the city.“For the next five years, we will not have any intentions to explore outside of Kuala Lumpur, not even Petaling Jaya,” Gan, who is also a promoter and substantial shareholder, said during the press conference in conjunction with the company’s prospectus launch.
He added that the group will continue to look for more land within Kuala Lumpur to expand its land bank.
When asked why the group is Kuala Lumpur-centric, Gan explained that the city has always been highly attractive to homebuyers due to its abundant job opportunities and urban lifestyle.
He also added that the city is highly sought-after due to its constantly improving transport network, giving it higher demand than other areas.
Radium is seeking to raise RM434mil from its initial public offering (IPO) exercise, with an issue price of 50 sen per share.
With no “offer-for-sale” component in its IPO, all proceeds from the exercise will be channelled to the group.
“All the money generated from this IPO goes towards growing the company. The promoters or substantial shareholders will not pocket anything from this exercise,” Gan emphasised.
The group has earmarked RM171mil or 39% of its proceeds for the expansion of its land bank and development expenditure and RM109.30mil or 25% for the group’s hotel construction within one of its residential developments.
Another RM93.87mil or 22% of the proceeds is allocated for repayment of bank borrowings, RM39.83mil or 9% for working capital, and the remaining RM20mil or 5% for listing expenses.
Gan said Radium has signed a joint venture agreement to potentially launch a new development in Mukim Batu in the first half of 2024. The company has also shortlisted three parcels of land in Mukim Petaling for potential acquisition and joint development, he added.
Gan highlighted that to date, the company has delivered projects with a total gross development value (GDV) of RM2.1bil.
“We will also develop our RM1.5 billion GDV new launches in 2023,” he added.
In the third quarter of 2023, Radium will reveal its largest project yet in Salak South, Kuala LumpurL, with a development value of nearly RM1bil.
This project will complement the company’s recent launch of The Chancery on Jalan Ampang in February 2023, which will include five floors of a hotel that will be built using the RM109.3mil from the IPO proceeds.
Meanwhile, Radium chairman Tan Sri Mohd Amin Nordin Abd Aziz, who was a former KL City Hall (DBKL) director-general, believes Kuala Lumpur has a strong reputation as a thriving hub.
“I would know. After all, I’ve dedicated my entire public service career of more than 40 years in DBKL to manage the overall planning, operations and coordination of urban development and socio-economic development of the city,” the former KL mayor added.
Radium targets to distribute no less than 30% of net profits to shareholders in each financial year as annual dividends.
The group’s listing exercise comprises a public issuance of 868 million new shares, or 25% of its enlarged share capital of 3.47 billion shares, giving it a market capitalisation of RM1.73bil upon listing, based on its IPO price.
Of the 868 million new shares set to be issued, 273 million will be available to the Malaysian public through a balloting process, with 136.50 million reserved for bumiputra investors.
An additional 435 million shares will be offered through a private placement to selected bumiputra investors approved by the International Trade and Industry Ministry, and another 100 million shares through private placement for selected investors.
