Sunday 14 Jul 2024
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KUALA LUMPUR (June 20): Main-Market bound property developer SkyWorld Development Bhd is seeking opportunities to set foot in the Vietnam market in the next three years.

Speaking at a press conference after the launch of the company’s IPO prospectus, its founder and non-independent executive chairman Datuk Seri Ng Thien Phing said SkyWorld’s ultimate goal is to become a regional player.

“We have been studying the land in Vietnam for about three- to four years but we have not acquired any land until today. But, we will start with a small project in Ho Chi Minh city,” he said.

According to Ng, the Kuala Lumpur-based company rides on urbanisation and Vietnam’s has a lot of potential, given that its urbanisation of 40% is about half of Malaysia’s 78%.

Ng (right), with Kenanga Investment Bank executive director and head of group investment banking and Islamic banking Datuk Roslan Tik, at the SkyWorld prospectus launch on Tuesday.

“We are open to options (for property development) including outright purchase or joint venture, as we realise that the Vietnamese like Malaysian developers, as they feel that we are good in terms of quality [and] design, and [are] very professional. Maybe, we have other peers that have invested in Vietnam before and they are doing very well there... (hence) they are happy to work with us,,” he said.

On the local market, Ng said that the company also intends to expand beyond Kuala Lumpur, into areas in the Klang Valley such as Subang Jaya, Petaling Jaya, Selayang and Ampang Jaya.

“In the future, we also plan to launch 10 new developments by 2026, with a total gross development value of RM4.08 billion,” he said.

SkyWorld’s initial public offering (IPO) on the Main-Market of Bursa Malaysia is slated to take place on July 10, 2023. Issued at 80 sen per share, the enlarged share capital of its IPO of RM1 billion shares will translate into a market capitalisation of RM800 million.

The IPO exercise involves a public issue of 208 million new shares and offer for sale of 192 million existing shares, and will raise a total of RM320 million for the company and offerors. The public issuance exercise will raise RM166.4 million. 

Of the total proceeds raised from the issuance of new shares, SkyWorld has earmarked RM100 million or 60.1% for the acquisition of land for development.

Another RM35 million (21.2%) has been budgeted for working capital for project development and RM20 million (12.0%) for the repayment of bank borrowings, with the remaining RM11.2 million (6.7%) allocated for IPO related expenses.

Kenanga Investment Bank Bhd is the principal adviser, underwriter and placement agent for the offering, while Newfields Advisors Sdn Bhd is the financial adviser.

Edited ByKamarul Azhar
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