{"id":14811,"date":"2023-06-26T17:45:10","date_gmt":"2023-06-26T09:45:10","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=14811"},"modified":"2026-06-08T23:20:02","modified_gmt":"2026-06-08T15:20:02","slug":"skyworld-ipo-7-key-things-investors-should-know","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hans\/skyworld-ipo-7-key-things-investors-should-know\/","title":{"rendered":"Skyworld IPO: 7 Key Things Investors Should Know"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">On 20 June 2023, Skyworld Development Bhd (Skyworld) had recently issued its IPO Prospectus (<\/span><a href=\"https:\/\/disclosure.bursamalaysia.com\/FileAccess\/apbursaweb\/download?id=226477&amp;name=EA_DS_ATTACHMENTS\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">Part 1<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/disclosure.bursamalaysia.com\/FileAccess\/apbursaweb\/download?id=226478&amp;name=EA_DS_ATTACHMENTS\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">Part 2<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/disclosure.bursamalaysia.com\/FileAccess\/apbursaweb\/download?id=226479&amp;name=EA_DS_ATTACHMENTS\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">Part 3<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/disclosure.bursamalaysia.com\/FileAccess\/apbursaweb\/download?id=226480&amp;name=EA_DS_ATTACHMENTS\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">Part 4<\/span><\/a><span style=\"font-weight: 400;\">) on Bursa Malaysia and from it, extended an invitation to subscribe its IPO shares at 80 sen per share. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Upon the successful listing of its shares, Skyworld\u2019s market capitalisation shall be lifted up to RM 800 million. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The subscription of its IPO shares shall end on 27 June 2023. Its shares would be listed on Bursa Malaysia on 10 July 2023.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-3.56.08-PM.png\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-14812\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-3.56.08-PM.png\" alt=\"\" width=\"1164\" height=\"482\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 20 of Skyworld\u2019s IPO Prospectus<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here, I\u2019ll summarise 7 things to know before subscribing to its shares. They are:\u00a0<\/span><\/p>\n<h2><b>1. Corporate Profile<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Skyworld is a property developer based in Kuala Lumpur. Since establishment in 2014, Skyworld has completed 7 property development projects as follows:\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-22-at-10.57.50-AM.png\"><img decoding=\"async\" class=\"alignnone size-full wp-image-14820\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-22-at-10.57.50-AM.png\" alt=\"\" width=\"982\" height=\"692\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">On 22 May 2023, Skyworld has 6 ongoing property projects as follows: <\/span><\/p>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-22-at-10.57.56-AM.png\"><img decoding=\"async\" class=\"alignnone size-full wp-image-14821\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-22-at-10.57.56-AM.png\" alt=\"\" width=\"986\" height=\"610\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">In addition, Skyworld has a total land bank of 55.66 acres in places as follows:<\/span><\/p>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-4.22.28-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14813\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-4.22.28-PM.png\" alt=\"\" width=\"996\" height=\"536\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 152-155, 163 of Skyworld\u2019s IPO Prospectus<\/span><\/p>\n<h2><b>2. Financial Results\u00a0<\/b><\/h2>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-22-at-10.58.02-AM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14822\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-22-at-10.58.02-AM.png\" alt=\"\" width=\"966\" height=\"286\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 329 of Skyworld\u2019s IPO Prospectus<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Profits in 2021-2022 were contributed by key projects such as:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">SkyMeridien Residences (completed on February 2023)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">SkySierra Residences (expected to be completed on June 2023)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">SkyAwani Residences \u2162 (completed on April 2022)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">SkyAwani Residences \u2163 (expected to be completed on Dec 2023)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Upon completion, they would not contribute substantially to Skyworld. As such, Skyworld would rely on other on-going projects and future projects for revenue and profits. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Its future projects worth RM 4.08 billion in GDV are as follows:\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-5.14.34-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14816\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-5.14.34-PM.png\" alt=\"\" width=\"1264\" height=\"684\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 166 of Skyworld\u2019s IPO Prospectus<\/span><\/p>\n<h2><b>3. Utilisation of IPO Proceeds<\/b><\/h2>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-5.09.58-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14814\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-5.09.58-PM.png\" alt=\"\" width=\"1140\" height=\"474\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 31 of Skyworld\u2019s IPO Prospectus<\/span><\/p>\n<ol>\n<li><b> Acquisition of Land for Development (RM 100.00 million)<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">As of now, Skyworld is still in the midst of identifying suitable land to be bought for property development.\u00a0<\/span><\/p>\n<ol start=\"2\">\n<li><b> Working Capital for Property Development (RM 35.19 million)<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">They refer to piling and main building works for two projects as follows:\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-10.48.12-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14817\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-10.48.12-PM.png\" alt=\"\" width=\"1014\" height=\"260\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 32 of Skyworld\u2019s IPO Prospectus<\/span><\/p>\n<ol start=\"3\">\n<li><b> Repayment of Bank Borrowings (RM 20.00 million)<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Skyworld estimates that it can attain RM 1.12 million in annual interest savings.\u00a0<\/span><\/p>\n<ol start=\"4\">\n<li><b> Estimated Listing Expenses (RM 11.21 million)<\/b><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<h2><b>4. Major Shareholders<\/b><\/h2>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-10.55.31-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14818\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-10.55.31-PM.png\" alt=\"\" width=\"1752\" height=\"420\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 42 of Skyworld\u2019s IPO Prospectus<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Upon its successful listing, Datuk Seri Ng Thien Ping, Datuk Lam Soo Keong, and Lee Chee Seng would remain as substantial shareholders of Skyworld. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ng would sit on the board as Skyworld\u2019s Chairman. Lam is an Executive Director while Lee is appointed as the CEO of Skyworld.\u00a0<\/span><\/p>\n<h2><b>#5: Expansion into Built-to-Rent Developments\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In addition, Skyworld intends to expand into built-to-rent properties, where the company develops commercial properties with the intention of earning rent for the long run. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Currently, Skyworld embarks in 2 built-to-rent projects in Setapak, Kuala Lumpur. They are:\u00a0<\/span><\/p>\n<ol>\n<li><b> Sama Square\u00a0<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">It is proposed to be a development that has 44 retail lots and commercial space with a total lettable area of 55,646 sq. ft. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The construction work for this project commenced in December 2022 and is expected to be completed by 2H 2023.\u00a0<\/span><\/p>\n<ol start=\"2\">\n<li><b> Skyblox<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">It is proposed to be a development of 128 units which have 320 lettable rooms, which can be leased out as a community hostel. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Its construction work started in December 2022 and is expected to be completed by 2H 2023.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-11.09.21-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14819\" src=\"https:\/\/www.smallcapasia.com\/wp-content\/uploads\/2023\/06\/Screen-Shot-2023-06-21-at-11.09.21-PM.png\" alt=\"\" width=\"1460\" height=\"288\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Source: Page 171 of Skyworld\u2019s IPO Prospectus\u00a0<\/span><\/p>\n<h2><b>#6: Dividend Policy<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Skyworld targets to pay out at least 20% of its PAT to its shareholders. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, based on 2022 earnings per share (EPS) of 10.6 sen, its dividends per share (DPS) shall be at least 2.12 sen, which works out to be 2.65% in initial dividend yield a year.<\/span><\/p>\n<h2><b>#7: Valuation\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Based on its IPO price of 80 sen, the offer is valued at P\/E Ratio of 7.55.\u00a0<\/span><span style=\"font-weight: 400;\">This is calculated based on its 2022 EPS of 10.6 sen.\u00a0<\/span><\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Skyworld had completed 7 project development projects and has profited from them for the 3-year period in 2020-2022. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">These projects would not contribute substantially to Skyworld as these properties had already been handed over to its buyers. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moving on, Skyworld is working on the few key projects listed above, including its built-to-rent developments, to generate income in the future. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus for investors, it is key to assess these projects before making a decision on it.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 20 June 2023, Skyworld Development Bhd (Skyworld) had recently issued its IPO Prospectus (Part 1, Part 2, Part 3, and Part 4) on Bursa Malaysia and from it, extended an invitation to subscribe its IPO shares at 80 sen per share. Upon the successful listing of its shares, Skyworld\u2019s market capitalisation shall be lifted [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[3113,3105],"tags":[2528,2529],"class_list":["post-14811","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investor-education-malaysia","category-malaysia","tag-skyworld-ipo","tag-skyworld-stock-analysis"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/14811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/comments?post=14811"}],"version-history":[{"count":3,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/14811\/revisions"}],"predecessor-version":[{"id":14839,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/posts\/14811\/revisions\/14839"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/media\/14823"}],"wp:attachment":[{"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/media?parent=14811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/categories?post=14811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smallcapasia.com\/zh-hans\/wp-json\/wp\/v2\/tags?post=14811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}