SKYWORLD Development Bhd, en route to a Main Market listing, is poised for growth – fuelled by the proceeds from its initial public offering (IPO).
As an urban property developer, SkyWorld is optimistic about the opportunities that lie ahead, thanks to its newly-acquired funds and proven track record of delivering successful projects.
Since 2014, SkyWorld has undertaken 13 grand-scale projects – with seven of them successfully completed and amassing a total gross development value (GDV) of RM3.05bil while the remaining six ongoing developments carry a total GDV of RM2.85bil.
SkyWorld Development Bhd founder and non-independent executive chairman Datuk Seri Ng Thien Phing says the company prides itself in its meticulous project management and timely completion of every venture, if not earlier.
“From 2014 until December 2022 we have launched approximately 11,500 units of homes, achieving a take-up rate of over 97%. This translates to unsold properties of less than 3%, which I believe is one of the lowest in the market,” says Ng.
SkyWorld primarily caters to urban residents aged between 25 and 45 years, targeting first-time homebuyers as well as individuals seeking to upgrade their homes, with a focus on the M40 and T20 income segments.
The company has ambitious plans for the future with 10 new developments set to launch between 2023 and 2026, boasting a collective GDV of RM4.08bil.
The IPO proceeds will play a pivotal role in supporting SkyWorld’s expansion, including land acquisition for development and working capital for project advancement.
Foray into Vietnam
In addition to its domestic ventures, SkyWorld is actively exploring opportunities beyond Malaysia’s borders.
The company aims to extend its property development business model to Ho Chi Minh City. After conducting an extensive study of the market for over four years, Ng believes in Vietnam’s vast potential.
“Vietnam has a population of close to 100 million people. From its demographics, we realise it is also a very young nation with a majority of its citizens between the ages of 25 and 45 years,” he says.
“In terms of the urbanisation rate, Malaysia’s is 78% yet still rising. Vietnam’s urbanisation rate is less than 40% and it still has plenty of room to grow.”
Ng points out that Vietnam has one of the highest foreign direct investments among Asean countries, with a huge demand for homes.
“We hope to kick start our first project in Ho Chin Minh City very soon,” he adds.
‘SkyWorld implements sustainability initiatives via our ESG policies in every aspect of our business,’ says its founder and non-independent executive chairman Datuk Seri Ng Thien Phing.
Green living
Sustainable living remains a core focus for SkyWorld, with the company emphasising the integration of passive and sustainable designs in all its projects.
The incorporation of green features such as landscaped pastures, rainwater harvesting, electric vehicle charging stations, and LED lighting sets SkyWorld apart.
“Beyond the sustainable features in our developments, SkyWorld implements sustainability initiatives via our environmental, social and governance (ESG) policies in every aspect of our business,” Ng says.
As part of their commitment to sustainability, SkyWorld strives to reduce ecological footprints and embed its sustainability principles into the company’s corporate values, employee engagement, and community involvement.
Compliance with regulations, laws, and codes of conduct is a priority, ensuring that sustainability factors are considered alongside other key performance indicators.
QLASSIC standard
SkyWorld takes great pride in maintaining exceptional quality across all its projects.
To ensure the highest standards are met, all SkyWorld developments undergo rigorous assessments under the Quality Assessment System in Construction (QLASSIC) by the Construction Industry Development Board (CIDB).
Notably, in 2020, newly completed projects SkyLuxe on the Park in Bukit Jalil, for a time, achieved the highest QLASSIC score in Malaysia with an impressive 85%, while SkyAwani II Residences in Sentul, Kuala Lumpur, obtained a commendable 79% score.
“Our pursuit of excellence isn’t just limited to our meticulously designed structures, but also to its surrounding environments,” says Ng.
In 2021, SkyWorld unveiled a 1.2ha resident-only central park as part of its SkySanctuary master development complete with lakeside amenities and lush greenery located in Setapak, Kuala Lumpur.
SkyLuxe on the Park obtained the highest QLASSIC score of 85% in the high rise residential category in 2020.
Employee empowerment
SkyWorld’s focus on employee empowerment and a bottom-up approach has played a crucial role in their success, resulting in a remarkable return on equity (ROE) of over 20%.
“I believe it is one of the highest in the market due to our effective cost management, and a lean organisation which focuses on efficiency,” Ng says.
This commitment to employee well-being and engagement has been recognised and reinforced through the company’s notable achievement of winning the esteemed Kincentric Best Employer Award in Malaysia four years in a row.
Public listing
SkyWorld’s decision to pursue a Main Market listing and IPO reflects the company’s confidence in its growth prospects and its dedication to creating value for investors and stakeholders.
With the recent approval from the Securities Commission to list on the Main Market of Bursa Malaysia, SkyWorld’s IPO involves a public issue of 208 million new shares – representing approximately 20.8% of its expanded issued share capital upon listing.
Additionally, there will be an offer for sale of 192 million existing shares – equivalent to approximately 19.2% of the group’s expanded issued share capital.
SkyWorld will be public listed on July 10, 2023. For more information, go to skyworld.my
