The IPO exercise will involve a public issue of 208 million new shares and offer for sale of 192 million existing shares.
Of the 192 million existing shares offered for sale, 150 million are reserved for Bumiputera investors approved by the investment, trade and industry ministry.
The remaining 42 million shares will be offered to other Malaysian and foreign institutional and selected investors.
The property group, which makes its debut on July 10 at an offer price of 80 sen a share, hopes to raise RM166.4 million from the initial public offering (IPO).
At a media conference to launch its prospectus today, SkyWorld said RM100 million or 60.1% of the proceeds has already been earmarked for land acquisition and development.
A total of 21.2% will be used for working capital for project development and another 12% is reserved for the repayment of bank borrowings.
The balance of 6.7% has been allocated for IPO-related expenses, the company said.
The group intends to declare a yearly dividend equivalent to 20% of its profit after tax attributable to owners of the company on a consolidated basis.
SkyWorld founder and non-independent executive chairman Ng Thien Phing said the group has proven itself to be an experienced property developer with a nine-year track record.
It now has RM3.05 billion in gross development value (GDV) across seven completed projects.
“We look forward to further strengthening our position in the property market and delivering long-term value to our shareholders,” Ng said.
The group plans to expand into the Vietnam market with an urban property development business model in Ho Chi Minh City.
Rather than being the end goal, Ng said, the IPO is a part of SkyWorld’s growth plan in two to three countries in the region.
The group is also targeting RM4.082 billion in GDV via 10 new developments planned between 2023 and 2026.
SkyWorld posted a profit after tax and minority interests of RM67.6 million for the financial year 2020 (FY2020) on a revenue of RM523.86 million, up from RM59.5 million for FY2021, when revenue was RM488.8 million.
Its net profit for FY2022 then jumped to RM106 million as revenue rose to RM790.45 million.
The public issue portion of the IPO will be made available from today until 5pm on June 27.
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.