Wednesday, November 13, 2013

IPO - Titijaya

Property developer Titijaya Land Bhd is looking to raise some RM122.6mil from its initial public offering (IPO).

RM30mil from the IPO proceeds was allocated to acquire additional land bank.

Of the remainder of the IPO proceeds, RM49.5mil will go into Titijaya's working capital, RM15mil to go into repayment of bank borrowings, RM24.3mil for repayment of advances from previous shareholders of its subsidiary Epoch Property Sdn Bhd and RM3.8mil for the listing exercise.

The group has completed a gross development value (GDV) of RM1.14bil and n ongoing GDV of RM1.08bil. In total, it has built over 3,000 homes within the Klang Valley.

The group will issue 81.7 million new ordinary shares an issue price of 50 sen each, at an issue price of RM1.50.

Of that 17 million new issue shares are for the public, six million for eligible directors and employees, 34 million for bumiputera investors approved by MITI and 24.7 million as placement for selected investors.

The listing also offers 49.5 million existing offer for sale shares at a RM1.50 offer price.

Upon listing, the group should have an enlarged share capital of 340 million ordinary shares of 50 sen each and 100 million redeemable convertible preference shares of 50 sen each.

It will pare down its gearing ratio to 0.44 times post IPO from 0.7 times.

Its total unbilled sales as at June 2013 was rm500 million. Its plan for 2014 is to launch a total GDV of about rm630 million worth of projects.

It is currently (Nov 2013) very focused in most of the prime locations in the Klang Valley.

Almost 99% of its income derived from property investment sales.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.