KUALA LUMPUR: SkyWorld Development Bhd aims to raise proceeds of RM166.4 million from a public issue of new shares as part of its initial public offering (IPO) exercise en route to its listing on Bursa Malaysia’s Main Market on July 10, 2023.
The exercise entails a public issue of 208 million new shares and an offer for the sale of 192 million existing shares at 80 sen per share, Skyworld said in a statement in conjunction with the launch of its IPO prospectus today.
The urban property developer said RM100 million or 60.1 per cent of the proceeds would be utilised to acquire land for development.
Another 21.2 per cent and 12 per cent have been earmarked for the working capital for project development and repayment of bank borrowings, respectively, while the remaining 6.7 per cent would be used for IPO-related expenses, it said.
Founder and non-independent executive chairman Datuk Seri Ng Thien Phing said the IPO would potentially enhance its business operations, create value for shareholders, and benefit its long-term prospects.
“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 these valuable opportunities,” he said.
The group said that based on an issue price of 80 sen per share and enlarged share capital of one billion shares, the market capitalisation would amount to approximately RM800 million upon listing.
SkyWorld also plans to declare a yearly dividend, equivalent to 20 per cent of its profit after tax attributable to owners of the company on a consolidated basis.
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.
Applications for the public issue portion are open today and will close on June 27, 2023, at 5 pm. – BERNAMA
