KUALA LUMPUR: SkyWorld Development Bhd begins trading on Bursa Malaysia's Main Market today at 80 sen, similar to its initial public offering (IPO) price.
Over 16.43 million shares were traded at the start.
The opening price of 80 sen represented a market capitalisation of RM800 million.
The stock subsequently dropped 3.8 per cent or three sen to 77 sen as at 11.30am, trading in a range of 75.5 sen to 81 sen during the period.
SkyWorld had a fair value assigned by Inter-Pacific Research of RM1.03 per share, 96 sen by PublicInvest Research and Apex Research, 92 sen by TA Securities Research, and 90 sen by RHB Research.
Earlier, Datuk Seri Ng Thien Phing, SkyWorld founder and executive chairman, expressed happiness at its listing.
"As SkyWorld embarks on this new journey, we are confident that its strategic approach and careful allocation of resources will enable it to deliver a modern skyline of quality development projects and accelerate its development plans both locally and regionally," he said.
Ng said the listing represents a significant turning point for the company and is the result of all the team's hard work in establishing the SkyWorld name in the public eye.
SkyWorld plans to declare an annual dividend with a target payment ratio of 20 per cent of its profit after tax attributable to the company's owners.
In a recent report, SkyWorld stated that the 50 million new shares it sold to the public were 0.19 times oversubscribed.
The company sold 208 million new ordinary shares for 80 sen apiece, generating proceeds of RM166.4 million.
Of the total proceeds, RM100 million has been set aside for the purchase of development land.
Working capital for project development procurement and bank debt repayment has been allocated at RM35.2 million and RM20 million, respectively.
The remaining RM11.2 million has been allocated to defray fees and listing expenses.