KUALA LUMPUR (Dec 10): Radium Development Bhd, which is principally involved in the development of high-rise residential properties, is seeking a listing on the Main Market of Bursa Malaysia to raise funds for the group's land bank acquisition for future developments in the Klang Valley.

It also hopes to raise funds to repay the group’s bank borrowings, to develop a hotel in Ampang, and for working capital.

According to its draft initial public offering (IPO) prospectus posted on the Securities Commission Malaysia’s website, 800 million new shares will be issued — representing about 25% of its enlarged issued share capital — of which 200 million shares will be made available for application by the Malaysian public.

Of the balance, 400 million will be placed with selected Bumiputera investors approved by the Ministry of International Trade and Industry, while 140 million will be placed out to other selected investors. The remaining 60 million will be made available for application by eligible key senior management, employees and business associates.

The company's largest shareholder is its group managing director Gan Kah Siong, with 21% direct stake and an indirect 50% held via Cengal 2020 Sdn Bhd, followed by his siblings and executive directors Gan Tiong Kian with 13% direct and indirect stakes, and Gan Kok Peng with 11.5%. All three are also promoters of the IPO.

Post-IPO, Kah Siong's shareholding could be trimmed to 14.75% direct and 37.5% indirect (via Cengal 2020), while Tiong Kian's direct and indirect holdings will become 9.75%, and Kok Peng's will dwindle to 8.63%.

For the financial year ended Dec 31, 2020 (FY20), Radium Development made a net profit of RM87.89 million on a revenue of RM588.07 million, compared with about RM128 million for FY19 on a revenue of RM472.81 million. In FY18, the group made a net profit of RM19.05 million on a revenue of RM203.1 million.

Malacca Securities Sdn Bhd is the principal adviser, underwriter and placement agent for the IPO.