Tambun Indah Land oversubscribed by 14.9 times

Written by Sharon Tan    Tuesday, 11 January 2011 11:18

KUALA LUMPUR: Property developer Tambun Indah Land Bhd’s initial public offering (IPO) of 11.05 million shares was oversubscribed by 14.9 times where 10,751 applications for 175.7 million shares with a total value of RM123 million were received.

“We are extremely pleased with the oversubscription for our IPO, as this is a strong indication of investors’ confidence in our track record and capabilities as a niche property developer in bringing innovative concepts and building high-quality homes in mainland Penang.

“We anticipate that the property market in mainland Penang will continue to see positive prospects, particularly as investors are seeking high-value properties with high capital appreciation potential,” said Tambun Indah managing director Ir Teh Kiak Seng.

Tambun Indah is known for its first gated-and-guarded community Taman Tambun Indah and Palm Villas. The company is said to have a gross development value of RM1 billion in the pipeline up to 2016.

Scheduled to be listed on the Bursa Malaysia Main Market on Jan 17, its IPO consists of a public issue of 32 million new ordinary shares and an offer-for-sale of 22.1 million vendor shares at an IPO price of 70 sen each.

Of the 32 million new ordinary shares under the public issue, 11.05 million shares were allocated for the Malaysian public; 11.05 million shares for eligible directors, employees and business associates of the group; and 9.9 million shares for private placement.

Tambun Indah’s IPO will raise RM22.4 million, of which, RM12.70 million will be for working capital, RM7.1 million for repayment of borrowings and the remaining RM2.6 million to defray listing expenses.