Property developer SPB gets SC nod for Main Market listing

• He also stated that the company had an average take-up rate of about 96% for its completed projects, indicating favourable responses for its products.

KUALA LUMPUR (Feb 4): SPB Development Bhd said on Monday it had secured the approval from the Securities Commission Malaysia (SC) for its listing on the Main Market of Bursa Malaysia. 

The listing offers investors up to 30% stake in the company, which made a net profit of RM46.02 million on revenue of RM200.81 million in the financial year ended Dec 31, 2023.

SPB has three ongoing projects — Taman Nuri in Melaka, Taman La Casa Lunas in Kedah, and Taman Akasia in Johor — with total gross development value of RM389 million. The company still has 664 acres of undeveloped land bank throughout the country.

The group is also acquiring seven pieces of land in Plentong, Johor Bahru measuring approximately 187.4 acres, and has entered into a joint-venture agreement to develop adjacent land to the abovementioned measuring approximately 189.2 acres.

The proposed IPO involves a public issue of 191.1 million new shares, and an offer for sale of 87.3 million existing shares. 

The retail tranche will see 47.1 million shares allocated to the Malaysian public and eligible persons.

The institutional tranche comprises 231.4 million shares to institutional and selected investors, including Bumiputera investors, at a price to be determined by bookbuilding. 

"We believe that the IPO is timely, as we hope to be able to execute our refined strategy in developing landed residential projects with close proximity to high growth industrial areas which offer employment opportunities, rising affluence and population growth," said SPB chief executive officer Datuk Jacky Yap in a statement on Monday.

He also stated that the company had an average take-up rate of about 96% for its completed projects, indicating favourable responses for its products.

In addition, he believes the company's strategy will be achievable by leveraging scalable designs and build systems backed by the industrialised building system (IBS).

Proceeds from the IPO will be used as working capital for upcoming residential development phases in Lunas in Kedah, and Banting in Selangor, estimated to cost RM210 million.

The company also intends to use the IPO proceeds for the purchase of aluminium formwork for upcoming development projects in Banting, Selangor, and Seberang Perai Utara, Penang.

Meanwhile, any proceeds from the offer for sale will accrue entirely to Jacky Yap's father and SPB executive chairman Datuk Yap Pit Kian, who founded the company. 

After the IPO, his near-complete control in SPB will be diluted to a 2% direct stake, and a 60% indirect stake through family vehicles PKYap Family Capital Sdn Bhd and PK Holdings Sdn Bhd.

Datuk Sean Yap, another son of Pit Kian, is SPB's chief financial officer. Yap Lih Shyan, the daughter, is the chief operating officer.

Hong Leong Investment Bank is the IPO’s principal adviser, bookrunner and underwriter, while Sierac Corporate Advisers is the financial adviser.

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