Kuala Lumpur-centric property developer Radium Development Berhad today (April 3) signed an underwriting agreement with Malacca Securities Sdn Bhd (Malacca Securities) and CIMB Investment Bank Berhad (CIMB Investment Bank) in conjunction with its upcoming initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia).
Radium’s IPO exercise involves a public issuance of 868.0 million new shares, representing 25.0% of its enlarged share capital. Radium’s IPO is distinctive in that there is no offer-for-sale component, with all IPO proceeds channeled to the Group. The IPO proceeds will substantially be utilised for the acquisition of landbank and development expenditure, as well as hotel construction, demonstrating Radium’s commitment to accelerate its business growth.
Out of the 868.0 million new shares to be issued, 273.0 million shares will be made available to the Malaysian public via balloting; and 60.0 million shares to its 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 435.0 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 100.0 million shares for selected investors by way of private placement.
Malacca Securities is the Principal Adviser, Managing Underwriter and Joint Placement Agent of the Radium IPO, whilst CIMB Investment Bank is the Joint Underwriter and Joint Placement Agent.
Radium is slated to list on the Main Market of Bursa Malaysia in the second quarter of 2023.
Datuk Gary Gan, Group Managing Director of Radium Development Berhad said, “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 RM1.5 billion worth of new launches in 2023.
The signing of the underwriting agreement is a significant milestone for Radium as it brings us a step closer to being a listed entity on the Main Market of Bursa Malaysia Securities Berhad. We believe that this IPO will accelerate our expansion plans by allowing us to tap into the equity capital market to capitalise on future growth opportunities.”
Lim Chia Wei, Managing Director of Malacca Securities Sdn Bhd said “In line with Malacca Securities’ mission of building wealth together with our Clients; enabling them to take full charge of their financial future with confidence, we have always focused on helping the average man on the street with our array of investment services.
In our joint commitment to champion diversity, equity, and inclusion for all Malaysians, we are dedicated to perform our duty with Radium in championing equal access to home ownership throughout Kuala Lumpur, especially in the affordable housing segmentation.
The management’s resolve to achieving long term growth is clearly demonstrated from the IPO which is carried out without an offer-for-sale and that all monies raised are channeled towards the Company’s future growth.
It is an honour and privilege to bring Radium to the market; an emerging property developer with years of experience and dedication to enabling home ownership in the heart of Kuala Lumpur city. Malacca Securities is pleased to be a conduit of Radium’s IPO journey.”
Radium intends to tap into the growing population in Kuala Lumpur, considering its improvement in the urban transportation network, Government-led home ownership initiatives, and immense attraction for job opportunities. It is estimated that there is underlying demand of more than 300,000 homes in Kuala Lumpur, as compared with regional city centres such as Taipei, Shanghai, and Singapore.
Hence, Radium has earmarked approximately RM1.5 billion worth of new launches in 2023, of which it has unveiled the RM521.0 million R Suite Chancery Residences in early 2023, featuring residences coupled with a four-star hotel. Its prime location on Jalan Ampang – being 5km from the city centre and between Gleneagles Hospital Kuala Lumpur and KPJ Ampang Puteri Hospital – positions it aptly for the medical tourism sector.
Radium is also planning to launch a future development in Salak South/Sg Besi later this year, consisting of urban residences and affordable homes.
Datuk Gary Gan concluded, “Location and close proximity to amenities such as MRT/LRT and schools are still the top priority for a buyer in deciding to own a property. This is where Radium has the upper hand as our developments are located in high-demand areas with ample job opportunities.”
