PETALING JAYA: SkyWorld Development Bhd, an urban property developer principally involved in investment holding, provision of management services to its subsidiaries and property development, aims to raise RM166.4 million from its initial public offering (IPO).
The IPO, in conjunction with its proposed listing on the Main Market of Bursa Malaysia that is set for July 10, 2023, involves a public issue of 208 million new shares and an offer for sale of 192 million existing shares at 80 sen per share.
SkyWorld has earmarked RM100 million or 60.1% of the proceeds raised from the public issue for the acquisition of land for development. 21.2% and 12% have been budgeted for the working capital for project development and repayment of bank borrowings respectively. The remaining 6.7% of the proceeds have been allocated for IPO-related expenses.
At the unveiling of the IPO prospectus today, SkyWorld said it intends to declare a yearly dividend equivalent to 20% of its profit after tax attributable to owners of the company on a consolidated basis.
Based on the enlarged issued share capital of 1.0 billion shares and price of 80 sen per share, the market capitalisation works out to RM800 million.
SkyWorld founder and non-independent executive chairman Datuk Seri Ng Thien Phing said that it has proven itself to be an experienced property developer delivering quality housing as evidenced by its nine-year track record.
“We believe our IPO offering has the potential to enhance our business operations, create value for our shareholders, and benefit our long-term prospects.
“Looking ahead, we anticipate the property market to grow in an upward trajectory after the challenges over the last two years. SkyWorld recognises the untapped potential and is poised to seize on these valuable opportunities,” he added.
Kenanga Investment Bank Bhd is the principal adviser, underwriter and placement agent while Newfields Advisors Sdn Bhd is the financial adviser for this IPO exercise.
Kenanga Investment Bank executive director and head of group investment banking and Islamic banking Datuk Roslan Tik commented, “The IPO exercise comes at an opportune time for SkyWorld, considering the growth opportunities for housing projects in Kuala Lumpur, as urbanisation continues to pick up pace coinciding with the overall economic development of Malaysia.”
