SkyWorld Development targets RM166.4mil in proceeds from IPO

KUALA LUMPUR: Main Market-bound SkyWorld Development Bhd aims to raise about RM166.4mil in proceeds from its initial public offering (IPO), the bulk of which would go towards business expansion.

In conjunction with the launch of its IPO prospectus, the urban property developer said it will make a public issue of 208 million new shares and offer for sale 192 million existing shares at 80 sen per share.

Of the proceeds, RM100mil or 60.1% has been earmarked for land acquisition for development, 21.2% will be utilised for working capital for project development and 12% will be allocated for the repayment of bank borrowings.

The remaining 6.7% of the proceeds will be used to pay the IPO-related expenses.

Based on the enlarged issued share capital of approximately one billion shares and price of 80 sen per share, the company will have a market capitalisation of about RM800mil upon listing.

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.

“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.

Kenanga Investment Bank Bhd 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.

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

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

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