KUALA LUMPUR: Radium Development Bhd's share price opened at 35 sen today on the Main Market of Bursa Malaysia.
The launching price of 35 sen is 30 per cent lower than the price of its initial public offering (IPO) of 50 sen.
Radium's IPO public tranche of 273 million shares was completely subscribed after it received a total of 10,496 applications for 279.12 million shares.
The exercise entails the public issuing of 868 million new shares, representing 25 per cent of the company's increased share capital of 3.47 billion shares.
Radium will generate RM434 million in proceeds from its IPO, with RM171 million set aside for land bank purchase and development costs, and RM109.3 million set aside for hotel construction.
A further RM93.9 million is allocated for repayment of bank borrowings, RM39.8 million for working capital, and the remaining RM20 million to defray listing expenses.
Radium focuses on the development of high-rise residential properties such as condominiums, serviced apartments, suite apartments, and Soho units within Kuala Lumpur.
The company posted a RM2.94 million net profit for the first quarter ended March 31, 2023.
Group revenue stood at RM25.29 million, which was lower than the revenue registered in the preceding year.
Radium attributed this primarily to lower revenue recognised from the ongoing Vista Sentul Residences project and the newly-launched R Suites Chancery Residences project in February 2023.
Radium's earnings per share stood at 11 sen.
For its audited financial year 2022 (FYE2022) results, Radium said its revenue dropped to RM563.69 million in FYE2021, due to the completion of its projects in FYE2021.
This included the Residensi Semarak Platinum, which was completed in October 2021.
Additionally, higher revenue recognition from the Residensi Platinum OUG project and the Residensi PV9 project in FYE 2021 contributed to the variance.