KUALA LUMPUR (June 6): SkyWorld Development Bhd has signed an underwriting agreement with Kenanga Investment Bank Bhd for its initial public offering (IPO) and listing on the Main Market of Bursa Malaysia, which it targets to take place in the third quarter of 2023.

The IPO entails a public issue of 208 million new shares and an offer for sale of 192 million existing shares, it said in a statement on Tuesday (June 6).

The sale of shares will comprise:

i) a retail offering of 75 million shares or 7.5% of SkyWorld's enlarged issued shares, of which 50 million are shares available to the Malaysian public via balloting, while 25 million shares are for application by eligible directors, key senior management, employees and persons who have contributed to the success of the company; and
ii) an institutional offering of 325 million shares representing 32.5% of its enlarged issued shares, of which 150 million will be offered to Miti-approved Bumiputera investors, and 175 million shares to other institutional and selected investors.

“We are thrilled to announce the signing of the underwriting agreement for our IPO. With this, we are one step closer towards our listing on the Main Market of Bursa Malaysia Securities Bhd,” said SkyWorld’s founder and non-independent executive chairman Datuk Seri Ng Thien Phing.

According to Ng, proceeds from the IPO will be used to expand the company’s landbank, repay its bank borrowings, as working capital, and to defray the cost of listing.

“We look forward to further strengthening our position in the market and delivering long-term value to our stakeholders. I would like to extend my deepest appreciation to Kenanga Investment Bank Bhd for the support rendered to us throughout our listing exercise,” he added.

Meanwhile, Kenanga Investment’s executive director and head of group investment banking and Islamic banking Datuk Roslan Tik said: “We are pleased to support SkyWorld’s listing journey as their principal adviser, underwriter and placement agent. The quality and strategic location of SkyWorld’s developments puts them in good stead to achieve growth in the coming years and position themselves as a leading property developer. We thank SkyWorld for the opportunity to be involved in its IPO”.

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