KUALA LUMPUR: Newly-listed Radium Development Bhd plans to develop RM3.4 billion in property development projects in Kuala Lumpur over the next five years.
They include RM1.5 billion in new launches this year, RM1.9 billion in pipeline projects in Mukim Batu and Mukim Petaling set to launch in 2024, and continuing projects in Jalan Ampang and Salak South.
Radium Group managing director Datuk Gary Gan Kah Siong said after the company's listing yesterday that the 2023 projects are all green buildings with green renewable energy certification.
Gan said the company has launched two new projects this year, namely the RM474.4 million R Suites Chancery Residences in Jalan Ampang and the RM1 billion Residensi Desa Timur in Salak South.
Radium's share price opened at 35 sen yesterday 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 raised RM434 million in initial public offering (IPO) proceeds, of which RM171 million has been earmarked for acquisition of land and/or development expenditure, and RM109.3 million for hotel construction.
A further RM93.9 million was allocated for repayment of bank borrowings, RM39.8 million for working capital, and the balance of 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 R Suites Chancery Residences.
For its audited financial year 2022 (FYE2022) results, the company announced that its revenue fell to RM563.69 million, due to the conclusion of its projects in FYE2021. This included the Platinum Residensi Semarak, which was completed in October 2021.
The company has proposed to distribute a maiden interim dividend of a sen per share, or about RM35 million in dividend payout, in respect of its second quarter ending June 30, 2023 (2QFY2023).
It has set a dividend policy to distribute no less than 30 per cent of its annual net profit to all shareholders.
The company's earnings per share stood at 11 sen.