SkyWorld Development Berhad (SkyWorld) unveils its initial public offering (IPO) prospectus today which involves a public issue of 208,000,000 new shares and offer for sale of 192,000,000 existing shares at RM0.80 per share. The former will raise approximately RM166.4 million for the Company.
SkyWorld has earmarked RM100.0 million or 60.1% of the proceeds raised from the public issue for the acquisition of land for development. 21.2% and 12.0% 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 the IPO related expenses. Based on the enlarged issued share capital of approximately 1.0 billion shares and price of RM0.80 per share, the market capitalisation works out to approximately RM800 million. SkyWorld intends to declare a yearly dividend, equivalent to 20% of its profit after tax attributable to owners of the Company on a consolidated basis.
Out of the public issue of 208 million new shares, 50 million are allocated to the Malaysian public, 25 million to eligible persons, 133 million to selected shareholders.
With regards to land acquisition, SkyWorld is focused on developing areas at the fringe of Kuala Lumpur, such as Subang Jaya, Petaling Jaya, Selayang, and Ampang Jaya. Being a high-rise focused developer, SkyWorld revealed its business strategy of developing in densely populated areas to capture the sufficient number of house buyers.
According to SkyWorld founder and non-independent executive chairman Datuk Seri Ng Thien Phing, the organisation targets the M40, T20 group which accounts for about 1.6 million households in Kuala Lumpur and Selangor.
Towards the future, the organisation plans to build 10 new developments between 2023 to 2026 with a total gross development value of RM4.082 Billion. These include build-to-rent assets, including commercial squares and co-living spaces in Kuala Lumpur. Also notable is a future plan to develop at Ho Chi Minh City, Vietnam.
As of now, SkyWorld reports 7 completed developments with a total RM3.05 Billion gross development value across 23.78 acres of land. There are 6 on-going developments with a total gross development value of RM2.85 Billion across 19.42 acres of land.
Ng said, “We are thrilled to have launched our IPO prospectus today and are equally excited to hold the event at our recently completed development, The Valley @ SkySierra, Setiawangsa. SkyWorld has proven itself to be an experienced property developer delivering quality housing as evidenced by its 9-year track record. All these past completed developments received QLASSIC scores which are higher than the overall average score for the industry. Our commitment since the beginning has been towards building sustainable communities and elevating the quality of living standards alongside the value of our developments.”
“We believe our IPO offering has the potential to enhance our business operations, create value for our shareholders, and benefit our long-term prospects. With this, we are one step closer towards our listing on the Main Market of Bursa Malaysia Securities Berhad. We look forward to further strengthening our position in the property market and delivering long-term value to our shareholders. 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.
The public issue portion of the IPO will be made available from today onwards and will close on 27 June 2023 at 5.00 p.m. Kenanga Investment Bank Berhad is the principal adviser, underwriter and placement agent while Newfields Advisors Sdn. Bhd. is the financial adviser for this IPO exercise.
