Roslan (left) and Ng were all smiles holding each a copy of the IPO at the launch.

PETALING JAYA: SkyWorld Development Bhd has unveiled its initial public offering (IPO) in conjunction with its proposed listing on the Main Market of Bursa Malaysia Securities Bhd, set for July 10, 2023.

The IPO exercise involves a public issue of 208,000,000 new shares and an offer for the sale of 192,000,000 existing shares at RM0.80 per share. The former will raise approximately RM166.4mil for the Company. SkyWorld has earmarked RM100mil 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 IPO-related expenses.

Founder and non-independent executive chairman Datuk Seri Ng Thien Phing said SkyWorld has proven itself to be a developer experienced in delivering quality housing based on its nine-year track record, with the latest completed project The Valley @ SkySierra at Setiawangsa, where the IPO launch event was organised. 

“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).

“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 Bhd. We look forward to further strengthening our position in the property market and delivering long-term value to our shareholders.”

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 RM800mil. 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.

Ng also said that the company anticipates the property market to grow upward after weathering the challenges over the past two years. 

Also present at the launch was Kenanga Investment Bank Bhd executive director and head of group investment banking and Islamic banking Datuk Roslan Tik.  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.

The public issue portion of the IPO will be made available from today onwards and will close on June 27, 2023 at 5pm.

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