KUALA LUMPUR: SPB Development Bhd has filed for an initial public offering (IPO) on the Main Market of Bursa Malaysia to expand or replenish its landbank for future development projects.
The IPO entails the issuance of 278.4 million shares in SPB Development.
A total of 231.39 million shares are earmarked for institutional and selected investors including Bumiputera investors approved by the Ministry of Investment, Trade and Industry, Malaysia at the institutional price to be determined by way of bookbuilding.
While the remaining 47 million shares are allocated to the Malaysian public and eligible persons.
On the acquisition of landbank, the company stated in its prospectus that was filed to the Securities Commission that it will be achieved either through direct purchase or joint ventures with landowners, where these landbanks may have obtained the necessary planning and development consents.
"The allocated gross proceeds will also include the amount to be used for development expenditure such as development charges, conversion premium, construction cost and professional fees."
"Subject to outcomes of feasibility studies, our group will also consider joint ventures with potential landowners to develop and/or invest in land, such as in Selangor, Penang, Kedah, Melaka and Johor.
These areas are targeted for potential future residential and mixed development, supported by well-established infrastructure and amenities," it said.
The company said it is in the midst of conducting feasibility studies to expand or replenish its land bank for future development in the five mentioned states.
The company has yet to enter any negotiations with any parties for any acquisition or joint venture arrangements to date.
Proceeds from the IPO will also be used as working capital for upcoming residential development phases in Lunas, Kedah and Banting, Selangor which have estimated total gross development cost (excluding land cost) of about RM210 million.
The company also intends to allocated some of the proceeds for the purchase of aluminium formwork for its upcoming development projects in Banting, Selangor and Seberang Perai Utara, Penang.