PETALING JAYA: Property developer Radium Development Bhd faced a lacklustre debut today, opening 30% lower at 35 sen compared to its initial public offering (IPO) price of 50 sen per share.
Radium’s IPO witnessed the full subscription of its public tranche of 273 million shares, as it received a remarkable 10,496 applications for a total of 279.12 million shares.
The process involved the issuance of 868 million new shares to the public, constituting 25% of the company’s expanded share capital, which now stands at 3.47 billion shares.
The group will raise RM434 million from its IPO, with RM171 million dedicated to landbank acquisition and development, RM109.3 million for hotel construction, RM93.9 million for bank borrowings, RM39.8 million for operational needs, and RM20 million for listing expenses.
With a gross development value (GDV) of RM3.4 billion projected over the next five years, the group feels confident that it can sustain itself moving forward.
“Our current five-year runway of ongoing and pipeline projects – plus the additional IPO proceeds for landbanking – makes our message very clear: Radium is poised for further growth in the future,” said group managing director Gary Gan.
Of the RM3.4 billion, RM1.5 billion comprises new launches and ongoing projects while RM1.9 billion encompasses pipeline projects in Mukim Batu and Mukim Petaling which would be unveiled in 2024.
Radium is a property development company which focuses on building high-rise residential projects within Kuala Lumpur.
Its list of completed projects include Platinum OUG Residence, Vista OUG and Vista Semarak.
The group reported a net profit of RM2.94 million for the first quarter ended March 31, 2023 (Q1 FY2023) on the back of a RM25.29 million revenue.