Jubilant trend in the stock markets continues with ACE Market bound Teladan Setia Group shares being oversubscribed 17.4 times by exuberant investors.
The Melaka-based property developer with a diversified portfolio of developments comprising landed, low-rise and high-rise residential properties, as well as landed shop houses, offices, and retail shops is heading for IPO with the issuance of 161,060,000 new shares at an issue price of RM0.48 per share,to raise approximately RM77.3 million in the proceeds.
Teladan Setia received a total of 18,396 applications for 743,770,000 Shares with a value of RM357.0 million from the Malaysian Public for the 40,265,000 Shares, representing an oversubscription rate of 17.47 times. For the Bumiputera portion, a total of 9,664 applications for 286,293,500 Shares were received, translating to an oversubscription of 13.22 times.
For the remaining public portion, a total of 8,732 applications for 457,476,500 Shares were received, representing an oversubscription rate of 21.72 times.
The 10,469,000 Shares available for eligible Directors, employees, and persons who have contributed to the success of the Group have all been fully subscribed. The private placement of 29,796,000 Shares available to selected investors as well as 80,530,000 Shares available to Bumiputera investors approved by the Ministry of International Trade and Industry (“MITI”) have also been fully subscribed.
Teladan Setia’s Managing Director, Mr. Richard Teo Lay Ban said, “We are delighted with the strong response by the Malaysian public as well as the market confidence towards our business and the journey we are headed. We are optimistic that we will continue to strive in the property development market, as we have done so in the past 24 years.”
The group will be using the proceeds raised to expand landbanks in Melaka and capitalise on the attractive land prices at the moment. Since the Group’s establishment in 1997, it has completed property projects with a total gross development value of RM2.1 billion.
Teladan Setia is slated to be listed on the ACE Market of Bursa Securities on Tuesday, 16 March 2021. Upon listing, Teladan Setia will have a market capitalisation of RM386.5 million based on the issue price of RM0.48 and its enlarged share capital of 805,298,002 shares.