PETALING JAYA: New launches, replenishment of land bank, expansion into build-to-rent developments and geographical expansion into Vietnam are the growth drivers of Main Market-bound Skyworld Development Bhd
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PublicInvest Research said as of May 22, the urban property developer’s completed projects had a collective take-up rate of 98% and it has a total sold and unbilled gross development value (GDV) of RM968.28mil, which will be recognised between the financial year 2023 (FY23) and FY27.
“Since the commencement of its property development business in October 2014 up to May 22, 2023, SkyWorld has successfully launched and completed seven developments with a total GDV of RM3.05bil.
“The group has six ongoing developments in Setapak, Setiawangsa, Sentul and Taman Desa with a total GDV of RM2.85bil and they are expected to be completed progressively between 2023 and 2026,” the research house said in a report yesterday.
SkyWorld planned to focus on the development of high-rise residential, commercial and affordable properties in Kuala Lumpur. The group’s offerings consist of affordable properties priced at RM300,000 each as well as market segments ranging from RM300,000 to RM1.05mil for each residential unit and from RM200,000 to RM2.91mil for each commercial unit in the city.
The group’s indicative listing date is on July 10, with an initial public offering (IPO) price of 80 sen a share.
Pursuant to the listing, SkyWorld’s market capitalisation is expected to be at RM800mil.
The IPO is expected to raise RM166.4mil from the issuance of 208 million new shares.
“Besides utilising 60.1% of the proceeds for acquisition of land for development, 21.2% and 12% of the proceeds are allocated for working capital for project development and repayment of bank borrowings, respectively,” PublicInvest Research said.
In terms of launching new developments, SkyWorld planned to raise its GDV through 10 planned developments in the city, providing it with an incremental GDV of RM4.1bil between the second half of 2023 and 2026.
“Focusing on high-rise residential development in urban areas, the group intends to expand its property development operations to Ho Chi Minh City, Vietnam.
“The plan is subject to SkyWorld securing suitable land at a feasible price within 36 months from the date of its listing. As of May 22, the group is still exploring suitable land for acquisitions,” PublicInvest Research said.
SkyWorld’s competitive strengths include its track record and significant emphasis on the quality of property developments.
Urbanisation, gradual increase in population growth and government incentives, are also poised to spur the group’s growth.
