SkyWorld Development Bhd enters the Main Market with an opening price of RM0.80 per ordinary share. As of 11.27am, the price is down at RM0.775.
With regards to the share price, SkyWorld Non-Independent Executive Chairman Datuk Seri Ng Thien Phing said, “Share prices is dictated by market forces. It is beyond our control and the market sentiment has been subdued by the global economy, and uncertainty, so for Skyworld side, nevertheless, we will continue to work hard and build our growth strategy by leveraging the fund raised from the IPO. So focus on ourselves. Do the best thing and we know sooner or later our investors will have confidence in us.”
With regards to SkyWorld’s latest venture in Ho Chi Minh City, Vietnam, Ng said there are several lands in the pipeline. No agreement has been signed so far but there will be further news in the second half of this year.
The IPO states a public issuance of 208 million new shares while the offer of sales constitutes 192 million existing shares. The developer company has raised a total of RM320,000 million.
Out of it, RM100 million of the proceeds will be used to acquire land for development, RM35.2 million for working capital for project development, RM20 million for repayment of bank borrowings and RM11.2 million on listing expenses.
Based on revenue segmentation, residential and commercial developments constitute RM372.2 million or 62.66% of total revenue, while affordable developments make up RM242.44 million or 37.26%.
As of financial year ended 2022, a snapshot of SkyWorld Development’s financial position was as such:
Total assets: RM1,364.60 million
Total equity: RM465.06 million
Total liabilities: RM899.54 million
Cash and cash equivalents: RM280.47 million
Net gearing ratio = 0.36x
Current ratio = 1.33x
The organisation possesses a land bank of approximately 55.66 acres, and to-date has completed 7 developments with a total gross development value of RM3.05 billion. Out of the total land bank mentioned, 37.17 acres has been set aside for 10 planned developments with an estimated gross development value of RM4.08 billion between the second half of 2023-2026.