Titijaya Land Berhad IPO

Titijaya LandTitijaya Land Bhd, a property developer is scheduled to be listed in Main Market of Bursa Malaysia on 27th November 2013.

The Initial Public Offering (IPO) consists of public issues of 81.7 million new ordinary shares and offer for sale of 49.5  million ordinary shares at an IPO price of RM1.50 per share.

Out of this, 17 million shares are allocated for application by Malaysian public and 6 million shares reserved for the eligible directors and eligible person who contribute to the company. The remaining shares are for private placement.

The IPO exercise is expected to raise RM122.6 million and the proceeds will be used for working capital (RM49.5 mil), repayment of borrowing (RM39.3 mil), purchase of landbank in Klang Valley (RM30mil) and listing expenses (RM 3.8mil).

Titijaya’s the biggest project to date is the RM1.5 billion integrated development in Shah Alam, which comprises retail space, office units and serviced apartments. This is followed by the Klang Sentral Serviced Apartments, which is valued at RM700 million.

The on ongoing projects are estimated to be worth just over RM1 billion. Notable ones include the Klang Sentral Commercial Centre and Casa Tiara Serviced Suites.

Next year, Titijaya plans to launch the subsequent phases of Seri Alam Industrial Park, the Zone Innovation Park@ Sungai Kapar Indah and the Mutiara Point Business Park developments.

Over the last decade, Titijaya had developed over 3,000 units of properties worth RM1.14 billion. Currently, the company holds 188ha of landbank in the Klang Valley.

More information about Titijaya Land can be found in their website.

Titijaya Land Berhad intends to pay 30 per cent of its yearly net profit as dividend. Base on 201X figures, this is translate to dividend yield of 3.07 percent or 4.6 sen per share

The table below is the financial summary for Titijaya Land Bhd.

FYE 2009 FYE 2010 FYE 2011 FYE 2012 FYE 2013
Revenue (RM’000) 151,112 101,831 137,182 118,252 193,766
Profit after Tax (RM’000) 13,413 27,196 22,524 34,140 52,196
Earnings per Share (sen)* 3.95 8.00 6.62 10.04 15.35
Price Earnings Ratio (x)* 38.02 18.75 22.64 14.94 9.77

* Based on number of shares post IPO
Alliance Investment Banks is the principal adviser, underwriter and joint placement agent of the IPO.

For those who are interested in Titijaya Land IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 18th November 2013 at 5pm. Tentative balloting date is on 20th November 2013 while the allotment date is on 26th November 2013.

Titijaya Land stock name in Bursa Malaysia is “TITIJYA”.

View Titijaya Land prospectus in Bursa Malaysia webpage.

What do you think about Titijaya Land IPO? Are you going to subscribe?

9 comments… add one
  • Whats your take about this IPO? btw would like to ask if Malaysian can apply for IPOs in Singapore ?

    • Seem OK if the manage to maintain 2013 PAT.

      Yes you could apply if you have CDS account. You could do via internet banking.

      • i guess ill test the water abit 😉 thanks man

  • I already applied! 🙂 Wish me luck.. lolx..

  • I’m a bit doubtful about this IPO since it involves land property which is pretty uncertain in terms of its future marketability when the new RPGT policy is introduced in 2014 budget. Do you think the listing price would be above the IPO price as we could have seen happen for UMWOG, Karex and Caring. Really appreciate your insight.

    • Kenanga Target Price/Fair Value is RM1.75. Hope the price will be above IPO price.

      • Thanks for your info. I’ve been following your blog since I learn about shares. Where did you get the Kenanga Target Price/Fair Value is RM1.75? I already applied too for this IPO. 🙂

  • Will this be another goreng counter?


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