One of Titijaya’s projects, First Subang in SS15, Subang Jaya.
KUALA LUMPUR: Property developer Titijaya Land Bhd which will be listed on Wednesday has attracted strong buying interest in pre-market trade.
At 8.30am, there were bids as high as RM2.50. At RM2.50, it is a hefty RM1 above its offer price of RM1.50.
At 8.34am, there were bids at RM1.72.
Titijaya raised RM122.55mil from its initial public offering (IPO). Of the proceeds, RM30mil was allocated to acquire more land, RM49.5mil for working capital, RM15mil to repay bank borrowings, RM24.3mil to repay advances.
Titijaya issued 81.7 million new 50 sen shares at an offer 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 Bumiputra investors and 24.7 million as placement for selected investors.
The listing also involves an offer for sale of 49.5 million existing shares.
RHB Research valued Titijaya at RM1.75. It said the company’s listing price-to-earnings was undemanding at six times. Its entrenched position in the Klang Valley would ensure sustainable sales due to persistent urbanisation and population growth.
The research house said Titijaya had no exposure to the Iskandar region, which was likely to be more sensitive to the government’s recent cooling measures.
“We estimate strong earnings growth of 68% and 12% for FY14-15,” it said.
RHB Research said Titijaya had developed more than 3,000 units of properties with a total gross development value (GDV) of about RM1.1bil. It currently has about 221 acres ofland with a potential GDV more than RM4bil in its portfolio, which is expected to last until 2020.