SkyWorld Development Bhd, a city real estate developer, is finally going to float its shares on the local stock exchange.

This confirms the NST Property report published in 2020, in which the company seeks to become public over the next two to three years.

SkyWorld's major shareholder and group managing director Datuk Ng Thien Phing told NST Property two years ago that the company plans to raise at least RM200 million via an initial public offering (IPO) for expansion.

Ng had said that the company is more than qualified to list and that it has been mulling an IPO for several years.

SkyWorld, via its subsidiaries, is largely involved in property development, focused on creating high-rise residential and commercial, as well as affordable properties in Kuala Lumpur.

Since the launch of its property development operations in 2014, the company has completed seven developments - Ascenda Residences, Bennington Residences, SkyMeridien Residences, SkyLuxe On The Park Residences, SkyAwani Residences, SkyAwani II Residences and SkyAwani III Residences - with a total gross development value of RM3.05 billion on 23.78 acres of land.

According to its propspectus, it has five on-going developments with a total GDV of RM2.28 billion on 14.98 acres of land.

The price range of the company's residential developments are targeted at more than RM300,000, while the affordable residential units under the SkyAwani Series are priced at RM300,000.

SkyWorld posted a consolidated profit after tax (PAT) of RM65.25 million for the financial year 2020 (FY2020) on revenue of RM523.86 million as opposed to a PAT of RM63.31 million for FY2021 on revenue of RM488.8 million.

The company's PAT for the fiscal year (2022) increased to RM104.29 million as revenue reached RM790.45 million.

According to its prospectus exposure published on the Securities Commission Malaysia's website on Monday (Dec 5), the company said it plans to replenish its land bank to seek potential land for acquisition in the Klang Valley.

Ng had previously said that the land's proximity to a park, public transportation like an LRT or MRT, and a densely populated area are its top three requirements for location.

According to the prospectus, SkyWorld aims to also launch 11 new developments between 2023 to 2026 with a total gross development value of RM4.61 billion.

It wants to develop build-to-rent assets, including commercial squares and co-living spaces in Kuala Lumpur, and to expand its urban property development business model into Ho Chi Minh City in Vietnam.

On its dividend policy, SkyWorld targets a payout ratio of 20 per cent of its annual consolidated PAT attributable to owners of the group for each financial year after taking into consideration its working capital requirements.

SkyWorld is seeking a listing on the Main Market of Bursa Malaysia.

The proposed IPO comprises a public issue of 208 million new shares and an offer for the sale of 192 million existing shares. The issue price of the shares has yet to be fixed.

Of the 208 million new shares, a total of 50 million shares will be allocated to the Malaysian public, 25 million shares to SkyWorld's eligible directors and persons who have contributed to the success of the group, and 133 million shares will be made available by way of a private placement to institutional and selected investors.

The offer for the sale of 192 million shares consists of 150 million existing shares for private placement to Bumiputera investors approved by the Ministry of International Trade and Industry and 42 million existing shares that will be placed out to institutional and selected investors.

Kenanga Investment Bank Bhd is the principal adviser, underwriter, and placement agent for the IPO.