Tambun Indah Land Bhd (TILB), a leading property developer in Penang, is scheduled for a main-market listing on 18th January 2011. The company was established in 1995, will continue to focus on the property market in Penang but also eyeing for landbank in the Klang Valley like in Shah Alam and Kajang.
Currently, TILB has enough funds for expansion but decided to go for a listing as it wants to raise the company’s profile and build confidence among its associates and customers.
Tambun Indah’s IPO consists of a public issue of 32 million new ordinary shares at an IPO price of 70 sen per share with RM0.50 par value.
11.05 million shares will be allocated for the Malaysian public, 9.9 million shares for private placement and 11.05 million shares for eligible directors, employees and business associates of the group. On top of that 22.1 million shares will be allocated for placement to identified investors.
The IPO will raise in estimate RM22.4 million in proceeds for the group. Of this, RM12.70 million will be allocated for working capital, RM7.10 million for repayment of borrowings and the remaining RM2.60 million to defray listing expenses.
TILB adopted a progressive dividend policy of paying between 40 and 60 per cent of group net profits to shareholders. At an IPO price of 70 sen per share, the annualised net dividend yield is estimated to be approximately 7 per cent for financial year end 2010.
MIMB Investment Bank Bhd is the adviser, sponsor, underwriter and placement agent for the group’s IPO exercise.
Among project that TILB undertake currently are Pearl Garden, in Simpang Ampat, Carissa Park condominium in Butterworth and Juru Heights in Seberang Prai and Seri Palma. All of these projects enjoying good take-up rate. TILB also plans for seven property projects worth RM1.1 billion over the next six years.
For those who are interested in TILB IPO you may subscribed at ATM machines or via Internet Banking. The subscription period is opened until 6th January 2011.
View Tambun Indah Land Bhd prospectus in Bursa Malaysia webpage. Tambun Indah Land Bhd stock name in Bursa Malaysia is “TAMBUN”
With Malaysia property market set to boom in 2012 and good dividend policy adopted, I am looking forward to subscribed to TILB IPO.
What do you think about TILB IPO? Are you going to subscribed?