SkyWorld Development unveils IPO Prospectus, targets to raise RM166.4 mil
SHAH ALAM - SkyWorld Development unveiled its initial public offering (IPO) prospectus yesterday in conjunction with its proposed listing on the Main Market of Bursa Malaysia Securities, which is set for this July 10.
The launch was held at The Valley Residences, SkyWorld’s newly completed residential development located at Setiawangsa, Kuala Lumpur. It’s the 8th completed project by SkyWorld and it is an urban property developer principally in investment holding, provision of management services to its subsidiaries, and property development.
Skyworld said IPO exercise involves a public issue of 208 million new shares and an offer for the sale of 192 million existing shares at RM0.80 per share. The former will raise approximately RM166.4 million for the company.
SkyWorld has earmarked RM100 million or 60.1 per cent of the proceeds raised from the public issue for the acquisition of land for development. About 21.2 per cent and 12.0 per cent have been budgeted for the working capital for project development and repayment of bank borrowings respectively. The remaining 6.7 per cent of the proceeds have been allocated for the IPO-related expenses.
“Based on the enlarged issued shared 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,” said SkyWorld in the statement.
SkyWorld founder and non-independent executive chairman Datuk Seri Ng Thien Phing said they are thrilled to have launched our IPO prospectus today and are equally excited to hold the event at the recently completed development.
“SkyWorld has proven itself to be an experienced property developer delivering quality housing as evidenced by its 9-year track record and 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,” he said.
He added SkyWorld believed IPO offering has the potential to enhance our business operations, create value for our shareholders and benefit our long-term prospects.
“We are one step closer to 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 and SkyWorld recognises the untapped potential and is poised to seize these valuable opportunities,” he said.
Meanwhile, Kenanga Investment Bank Berhad executive director and head of group investment banking and Islamic banking Datuk Roslan Hj Tik said 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.
I would like to extend our appreciation to the board and management of SkyWorld for trusting us, Kenanga Investment Bank Berhad, with the role of principal adviser, underwriter, and placement agent for this exercise.” he expressed.