SkyWorld launches IPO prospectus, targets 20% dividend payout

• The enlarged issued share capital of approximately one billion shares will translate to a market capitalisation of approximately RM800 million.  

KUALA LUMPUR (June 20): SkyWorld Development Bhd has unveiled its initial public offering (IPO) prospectus today, with a targeted yearly dividend payout ratio of 20%.

The launch, held at its newly completed The Valley Residences at Setiawangsa here, brings it one step closer to its proposed listing on the Main Market of Bursa Malaysia Securities Bhd, which is set for July 10.

The IPO exercise involves a public issue of 208 million new shares and offer for sale of 192 million existing shares at RM0.80 per share. The former will raise approximately RM166.4 million for the company, SkyWorld stated in a press release today.

The enlarged issued share capital of approximately one billion shares will translate to a market capitalisation of approximately RM800 million.  

SkyWorld has earmarked RM100 million or 60.1% of the total proceeds for the acquisition of land for development while 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 the IPO related expenses.

“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,” said SkyWorld founder and non-independent executive chairman Datuk Seri Ng Thien Phing in the statement.

Expansion beyond KL and Malaysia

In a press conference after the launch, Ng also revealed the company’s plan to become a regional player, with initial expansion plans to Vietnam, reported The Edge Malaysia.

“We have been studying the land in Vietnam for about three to four years but we have not acquired any land until today. But we will start with a small project in Ho Chi Minh City,” he said.

With its strength in urban residential concepts, Ng sees great potential in Vietnam, “given that its urbanisation of 40% is about half of Malaysia’s 78%”, stated the report.

The Kuala Lumpur-based developer also said the company intends to widen its reach in the Klang Valley into areas such as Subang Jaya, Petaling Jaya, Selayang and Ampang Jaya.

“In the future, we also plan to launch 10 new developments by 2026, with a total gross development value of RM4.08 billion,” he was reported saying.

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

Kenanga Investment Bank Bhd is the principal adviser, underwriter and placement agent while Newfields Advisors Sdn Bhd is the financial adviser for the IPO exercise.