Plan for biggest property IPO

TTDI Development Sdn Bhd, well-known for its Taman Tun Dr Ismail township in Kuala Lumpur, is set to launch Malaysia's biggest property initial public offering (IPO) this year, its top official says.

The property arm of the Naza Group, TTDI has hired CIMB Investment Bank Bhd to arrange the IPO and listing.

"The IPO targets a market capitalisation of at least RM850 million," TTDI group managing director Datuk Johan Ariffin told Business Times in an interview recently.

It plans to list its shares on the main board of Bursa Malaysia in the third quarter of 2008. It will submit a listing request to the Securities Commission by March or April, Johan said.

The IPO will ride on a wave of excitement over the property market. Easier rules have spurred strong demand for high-end residential properties.
There is also strong interest from foreign and local investors for commercial property in Kuala Lumpur.

TTDI currently has projects in hand worth more than RM6 billion.

Its biggest project is the RM4 billion Platinum Park commercial and residential project at Jalan Stonor, Kuala Lumpur.

"TTDI aims to raise an estimated RM100 million via a rights issue prior to the IPO for expansion of land bank and working capital," Johan said.

However, he declined to say how much TTDI will raise from the IPO.

Johan said post-IPO, TTDI's share capital will balloon to RM450 million from RM223 million now.

"We are in the process of preparing for the IPO. We anticipate it will be among the bigger issues this year, if approved," Johan said.

TTDI will use the IPO proceeds to fund working capital and expansion plans, and to part finance development costs.

The company is also planning to launch seven new projects this year, worth RM2 billion collectively.

They are Phase 1 of TTDI Kajang, comprising 56 units of double-storey link homes; The Valley TTDI, a one-ha residential development in Ulu Klang, Ampang, with 134 units of high-end bungalows and linked villas; Phase 1 of TTDI Puchong, consisting of 137 units of three- and four-storey shop offices; and Phase 1 of TTDI Alam Impian, with 136 units of double- storey link homes.

Others would include Laman Seri Phase 3, a gated residential development with 33 bungalows; and Laman Seri Business Park, comprising 46 units of four- and five-storey shop offices, both in Section 13, Shah Alam. It will also launch Jayamas II, which has 26 units of two- and three-storey shop offices in TTDI Jaya.

By New Straits Times (by Sharen Kaur)