Radium Development Berhad saw its public tranche of the initial public offering (IPO) on the Main Market of Bursa Malaysia fully subscribed. The company received a total of 10,496 applications for 279,117,100 shares. The public tranche entailed a total of 273,000,000 shares for application by the Malaysian public at an issue price of RM0.50 each.
Radium’s IPO will raise RM434.0 million in proceeds, of which the developer will use RM171.0 million for the acquisition of landbank and/or development expenditure, and RM109.3 million for hotel construction. A further RM93.9 million is allocated for repayment of bank borrowings, RM39.8 million for working capital, and the balance RM20 million to defray listing expenses,
According to the Independent Market Research prepared by Smith Zander, Radium holds 10 shares of the high-rise residential properties market in Kuala Lumpur based on 2021 revenue, and 7% of the same market based on a number of units. Radium is set to be listed on the Main Market of Bursa Malaysia on 31 May 2023, at an issue price of RM0.50 per share and a market capitalisation of RM1.7 billion.
