KUALA LUMPUR (Dec 8): SkyWorld Development Bhd is seeking a listing on the Main Market of Bursa Malaysia, according to its prospectus exposure published on the Securities Commission Malaysia’s website on Monday (Dec 5).

SkyWorld, via its subsidiaries, are mainly involved in property development, property investment, management services, treasury management, e-commerce business, and management consultancy services.

The proposed initial public offering (IPO) comprises a public issue of 208 million new shares, and an offer for sale of 192 million existing shares. The issue price of the shares has yet to be fixed.

Of the 208 million new shares, a total of 50 million shares will be allocated to the Malaysian public, 25 million shares for SkyWorld’s eligible directors and persons who have contributed to the success of the group, and 133 million shares will be made available by way of private placement to institutional and selected investors.

Meanwhile, the offer for sale of 192 million shares consists of 150 million existing shares for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, and 42 million existing shares that will be placed out to institutional and selected investors.

SkyWorld posted a consolidated profit after tax (PAT) of RM65.25 million for the financial year 2020 (FY2020) on a revenue of RM523.86 million as opposed to a PAT of RM63.31 million for FY2021, when revenue was RM488.8 million. Its PAT for FY2022 then jumped to RM104.29 million, as revenue rose to RM790.45 million.

Moving forward, the company said it plans to replenish its land bank to seek potential land for acquisition in the Klang Valley, and that it wants to launch 11 new developments between 2023 to 2026 with a total gross development value of RM4.61 billion.

It plans to develop build-to-rent properties, including commercial squares and co-living spaces in Kuala Lumpur, and to expand its urban property development business model into Ho Chi Minh City in Vietnam.

On its dividend policy, SkyWorld targets a payout ratio of 20% of its annual consolidated PAT attributable to owners of the group for each financial year after taking into account its working capital requirements.

Kenanga Investment Bank Bhd is the principal adviser, underwriter and placement agent for the IPO.