At the launch of SkyWorld's IPO prospectus. Kenanga Investment Bank Bhd executive director and head of group investment banking and Islamic banking Datuk Roslan Tik (left) and Ng.
PETALING JAYA: Main Market-bound Skyworld Development Bhd
is seeking to raise RM166.4mil from its initial public offering (IPO) to drive its future expansion plans.
Founder and non-independent executive chairman Datuk Seri Ng Thien Phing said SkyWorld, which has launched 13 grand-scale projects to-date, plans to launch 10 new developments between 2023 and 2026 with a combined gross development value (GDV) of RM4.08bil.
“While the current developments are primarily focused on Kuala Lumpur, we have also been exploring land in the Klang Valley, particularly in the fringes of Kuala Lumpur,” Ng told a press conference in conjunction with SkyWorld’s prospectus launch.
Ng specifically mentioned Subang Jaya, Petaling Jaya, Selayang, Ampang Jaya and Cheras as the group’s potential locations of interest.
He believes the urban property developer has a long journey ahead, even after listing, as its ultimate goal is to be a regional player, with a specific focus on seeking opportunities to enter the Vietnam market within the next three years.
“We have a strong aspiration to expand our presence throughout the South-East Asian region, which is why we have initiated the process of exploring land opportunities in Vietnam,” Ng explained.
According to Ng, the group has been actively involved in Vietnam for over three years, conducting studies on land opportunities.
However, as of now, they have not acquired any land in the country.
Regarding the expansion into Vietnam, Ng said that the group is open to exploring options such as outright purchase or joint-venture arrangements.
“We will initially commence with a small GDV project. Given our focus is on high-rise developments, our target will be the populated areas,” he added.
Ng noted currently, there were no immediate plans to expand beyond the Klang Valley.
He explained that unless there was a significant project in other locations, the company will not actively consider expanding outside the Klang Valley.
However, he did mention that if there were offers from the private sector or government to collaborate on projects in other areas, the company would consider them.
SkyWorld has successfully completed seven developments within Kuala Lumpur, with a combined GDV of RM3.05bil, and is currently involved in six ongoing developments with a projected combined GDV of RM2.85bil.
Out of the entire IPO 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.
SkyWorld’s IPO on the Main-Market is slated to take place on July 10, 2023.
