KUALA LUMPUR: SkyWorld Development Bhd will raise RM166.4 million from its initial public offering (IPO) on the Main Market of Bursa Malaysia on July 10.
Based on the enlarged issued share capital of about one billion shares and an IPO price of 80 sen apiece, the company's market capitalisation works out to roughly RM800 million.
The city developer intends to declare a yearly dividend, equivalent to 20 per cent of net profit to its shareholders on a consolidated basis.
SkyWorld plans to use RM100 million or 60.1 per cent of the proceeds from the share sale for the acquisition of land for development.
SkyWorld's founder and non-independent executive chairman Datuk Seri Ng Thien said 21.2 per cent and 12 per cent have been budgeted for the working capital for project development and repayment of bank borrowings respectively.
The remaining 6.7 per cent of the proceeds have been allocated for IPO-related expenses.
"We believe our IPO has the potential to enhance our business operations, create value for our shareholders, and benefit our long-term prospects.
"We look forward to further strengthening our position in the property market and delivering long-term value to our shareholders," he said at the company's IPO prospectus launch today.
Ng said looking ahead, the company anticipates the property market to grow in an upward trajectory after the challenges over the last two years.
He added that SkyWorld recognises the untapped potential in the local property market and is poised to seize the available opportunities.
Since the launch of its property development operations in 2014, the company has completed seven developments worth RM3.05 billion collectively.
It now has six ongoing developments with a GDV of over RM2.5 billion.
Ng revealed that it plans to launch 10 new developments by 2026, with a total GDV of RM4.08 billion.
SkyWorld reported a consolidated net profit of RM65.25 million for the financial year 2020 (FY2020) on revenue of RM523.86 million in contrast to a net profit of RM63.31 million for FY2021 on the back of RM488.8 million revenue.
Its net profit for FY2022 rose to RM104.29 million, as revenue increased to RM790.45 million.