KUALA LUMPUR: Titijaya Land Bhd (Titijaya Land), en route for listing on the Main Market of Bursa Malaysia on November 27, 2013, aims to raise RM122.6 million from its public initial offering (IPO).
In a statement yesterday, Titijaya Land said of the proceeds, RM49.5 million would be used for working capital and RM15 million to repay bank borrowings.
The rest would be used to repay advances from the previous shareholders of a subsidiary company (Epoch Property Sdn Bhd), purchase of land bank and estimated listing expenses, it said.
The property developer said it would issue 81.7 million new ordinary shares of 50 sen each at an issue price of RM1.50.
“Of the shares, 17 million new issue shares will be for the public, six million new issue shares for eligable directors, employees and persons who have contributed to the success of the group, 34 million for Bumiputera investors approved by the Ministry of International Trade and Industry and 24.7 million new issue shares by way of placement to selected investors,” it said.
Group operating officer, Lim Poh Yit, said the fund raised from the IPO would enable the group to strengthen its position in the Klang Valley as well as encourage geographical expansion to other property hotspots via land bank acquisitions.
“Titijaya owns about 188 hectares of strategic land bank within the Klang Valley that are mostly concentrated in the Petaling and Klang districts,” he said.
Lim said the group’s gross developement value (GDV) for on-goings projects has been estimated at RM1.08 billion.
“To date the company has developed over 3,000 units of properties with a completed GDV of RM1.14 billion,” he said. — Bernama