Company Background

Radium was incorporated in Malaysia on 19 March 2013 under the Companies Act 1965 (and is deemed incorporated under the Act) as a private limited company under the name of Idaman Sejiwa Development Sdn Bhd and changed its name to Radium Development Sdn Bhd on 2 September 2021. The Company was converted to a public limited company under the name of Radium Development Berhad on 14 September 2021. The company is a property developer principally involved in the development of high-rise residential properties

Use of proceeds

1. Acquisition of landbank and/or development expenditure - 39.40% (within 36 months)
2. Repayment of bank borrowings - 21.63% (within 24 months)
3. Hotel construction - 25.18% (within 36 months)
4. Working capital - 9.18% (within 24 months)
5. Listing expenses - 4.61% (Immediately)

Acquisition of landbank and/or development expenditure - 39.40% (within 36 months)

The company intends to allocate RM171.00 million, representing approximately 39.40% of the IPO proceeds, for the acquisition of a landbank for its future development in Klang Valley by acquiring the land bank directly, and acquiring company(ies) or entering into a joint venture arrangement with potential landowners holding the relevant landbank in which these land banks may have obtained the relevant planning and development consent, as well as to fund the development expenditure of the projects i.e., development charges, conversion premium, joint venture entitlement, construction cost, professional fees. Subject to the feasibility and viability study of projects, the company may enter into joint venture arrangement(s) with potential landowners to develop and/or invest in land in Klang Valley by leveraging on the background and financial standing of suitable partners for future property development. The company intends to develop high-rise residential properties with well-developed infrastructure and amenities within the surrounding area as well as good accessibility which are located within Klang Valley.

Repayment of bank borrowings - 21.63% (within 24 months)

The company intends to allocate RM 93.87 million, representing approximately 21.63% of the IPO proceeds, to partially repay the bank borrowings to settle the term loan which is attributable to the acquisition of landand development cost. As at the LPD, the total outstanding amount of the bank borrowing stood at RM 42.29 million as follows:-

Hotel construction - 25.18% (within 36 months)

The company intends to allocate RM109.30 million, representing approximately 25.18% of the IPO proceeds, to develop a hotel and expand into the management and operations of the hotel to venture into the hotel business as part of its future plans.

The hotel is part of the Group’s ongoing project, namely Suite Canselor which is located in Ampang, Kuala Lumpur, and is developed by the company’s subsidiary, Idaman Sejiwa (Ampang). This project is a commercial-residential development comprising one (1) tower of SOHO (i.e., 36 floors with 944 units of SOHO with further details as set out in Section 5.3.1(b) of this Prospectus) together with the hotel component as follows: -

• A boutique hotel with four (4)-star furnishing;
• Five (5) floors with 145 units of hotel rooms;
• Seven (7) floors of commercial areas and hotel facilities (same floors as SOHO
• units);
• One (1) floor of commercial area and water tank (shared with SOHO);
• One (1) floor of the hotel lobby (same floor as SOHO lobby); and
• Three (3) floors of car park including one (1) floor that is shared with SOHO,
• comprising 192 bays of carpark for hotel guests.

The total estimated GDC for the project excluding land cost will be RM391.50 million. The construction cost of the hotel is estimated at RM109.30 million as follows: -

The indicative timeline for the construction and commencement of the hotel operations is set out below: -

Working capital - 9.18% (within 24 months)

The company intends to allocate RM39.83 million, representing approximately 9.18% of the IPO proceeds, for the working capital for its Group’s day-to-day operations. The breakdown of the working capital is as follows: -

Business model

The company is a property developer principally involved in the development of high-rise residential properties. The Group focuses on the development of competitively-priced high-rise residential properties in strategic locations in urban Kuala Lumpur. The high-rise residential property development comprises condominiums, serviced apartments, suite apartments, and SOHO units.

The company is also committed to the development of affordable housing such as Residensi Wilayah (previously known as RUMAWIP) and PPAM (previously known as PPA1M) to support the Government’s effort in providing affordable housing to all Malaysian citizens. Residensi Wilayah is an affordable housing program, introduced by the Government, for middle-income buyers born, residing, and working in the Federal Territory of Kuala Lumpur. PPAM is an affordable housing scheme for civil servants. The affordable housing projects are either developed with its condominiums/serviced apartments under the same development order or developed as standalone projects. The Residensi Wilayah and PPAM projects are undertaken through the Group’s initiatives and do not involve Government awarded projects.

Subject to the feasibility assessment of the project’s neighborhood, the company may also develop commercial units within the project.

As at the LPD, the company has four (4) completed projects, four (4) ongoing projects and one (1) parcel of land for future development. All the completed and ongoing projects along with land for future development are located in Kuala Lumpur, Malaysia.

Project and landbank details

Click here to continue the IPO - Radium Development Berhad (Part 2)

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