KUALA LUMPUR (Aug 11): Gold Li Holdings Bhd, a property developer specialising in landed residential projects in Johor for the past 26 years, is planning to raise capital through an initial public offering (IPO) on the ACE Market of Bursa Malaysia.

Proceeds from the IPO will be used to fund five upcoming development projects in Johor with a combined gross development value (GDV) of RM58.23 million.

Of the five planned developments, four — Taman Desa Baiduri, Mukim Linau, Taman Naib Kadir Suria, and Taman Permatang Pasir II — are joint venture projects, with each expected to yield gross profit margins ranging from 24.4% to 30.5%.

“These projects have been identified for funding from the public issue proceeds as their expected commencement dates coincide with the anticipated timeline for receipt of proceeds upon our listing,” the Johor-based developer stated in its draft prospectus.

Gold Li noted that for projects under the joint venture arrangement, the company will be responsible for project planning, securing all necessary approvals, and overseeing construction and completion. The company also clarified that the landowners involved are not related parties to the group.

According to its draft prospectus filed with Bursa Malaysia, the proposed IPO comprises a public issue of 117 million new shares representing 19.5% of its enlarged share capital and an offer for sale of 36 million existing shares at a price to be determined later.

Proceeds from the offer for sale via private placement will accrue entirely to the selling shareholders — managing director Datuk Lee Tiau Huat and his spouse, Datin Lau Siew Su, who also serves as chief operating officer.

Post-IPO, their combined stake will be diluted to 73.3%, held primarily through their investment vehicle, Setia Mega Sdn Bhd, which will retain a 66.3% interest. The duo currently hold a direct 98.5% stake in Gold Li.

Of the 117 million new shares, 30 million will be allocated to the Malaysian public, six million to eligible persons, 42 million to selected investors, and 39 million via private placement to Bumiputera investors. The offer for sale will be conducted through private placement to selected Bumiputera investors approved by the Investment, Trade and Industry Ministry (Miti).

As of July 1, 2025, Gold Li has completed 108 projects, with nine currently ongoing and 31 future developments carrying a total GDV of RM400.4 million. The group also holds 32 parcels of land with a total area of 55.8 acres earmarked for future development. Its projects are primarily concentrated in the districts of Muar, Tangkak and Batu Pahat.

For the financial year ended Jan 31, 2025 (FY2025), Gold Li recorded a net profit of RM7.84 million on revenue of RM65.03 million, with a gross profit margin of 26.5% and a profit after tax margin of 12.1%.