SkyeChip Berhad

Date of Prospectus: April 2026

SkyeChip Berhad IPO: A Deep Dive into Malaysia’s Next IC Design Powerhouse

SkyeChip Berhad’s Main Market IPO presents a rare opportunity to invest in a rapidly scaling Malaysian IC design company. This comprehensive analysis covers the IPO offer, financial performance, use of proceeds, dividend policy, allocation mechanics, core business, market trends, risks, and listing outlook—grounded entirely in official disclosures.

IPO Snapshot: Offer Details and Key Figures

SkyeChip Berhad is launching its IPO on Bursa Malaysia’s Main Market, targeting investors seeking exposure to the high-growth integrated circuit (IC) design sector.

• IPO Symbol: Not specified
• Offer Price: RM0.88 per share
• Total Offer Size: 400,000,000 new ordinary shares
• Post-IPO Outstanding Shares: 1,796,000,000
• Indicative Gross Proceeds: RM352,000,000
• Number of Shares after Subdivision: 1,396,000,000 pre-IPO, 1,796,000,000 post-IPO
• Application Window: Opens 10:00 a.m., 29 April 2026; Closes 5:00 p.m., 6 May 2026 (Retail), 5:00 p.m., 7 May 2026 (Institutional)

Use of Proceeds: Driving R&D and Expansion

The IPO proceeds are geared toward aggressive growth, with the majority allocated to research, development, and capacity expansion.

This allocation underscores a bold, growth-driven strategy focused on product and IP development, technological edge, and operational scale-up.

Dividend Policy and Commitment

SkyeChip Berhad targets a payout ratio of up to 25% of PAT attributable to owners, subject to working capital, capex, and legal requirements.

• Payout Ratio Target: Up to 25% of PAT, post-listing
• Recent Actuals:
  • FYE 2023: 7.0% payout
  • FYE 2024: 40.5%
  • FYE 2025: 34.4%
  • FPE Oct 2025: No dividend declared
• No dividend restrictions on the company or subsidiaries as of LPD.

Dividend declaration remains at the Board’s discretion, with future payments guided by cash flow, capex, and legal compliance.

Allocation Breakdown: Public, Institutional, and Cornerstone Investors

• Public Issue: 400,000,000 new ordinary shares
• Cornerstone Investors: 155,000,000 IPO shares (8.6% of enlarged shares), at RM0.88 or lower
• Retail Underwriting: 135,327,200 shares underwritten at up to 1.6% commission
• Employee Share Option Scheme (ESOS): Up to 15% of issued shares (not yet granted as of the date of report)

Cornerstone/anchor allocations and underwritten tranches suggest strong institutional and retail demand support.

Investor Participation and Book Quality

Cornerstone investors are allocated a significant tranche of 155 million shares, reflecting high institutional interest. The retail portion is fully underwritten, boosting confidence in the offer’s absorption.

No specific oversubscription metrics or details on pre-listing disposals were provided. However, the presence of substantial cornerstone allocations and broad underwriting coverage indicates high book quality and likely robust listing-day support.

Deal Structure, Bookrunners, and Underwriters

• Principal Adviser, Lead Bookrunner, Joint Bookrunner, Managing Underwriter, Joint Underwriter: Maybank Investment Bank Berhad
• Joint Bookrunner, Joint Underwriter: CIMB Investment Bank Berhad
• Legal Advisers: Lee Choon Wan & Co. (issuer), Christopher & Lee Ong (bookrunners/underwriters)
• Auditors & Reporting Accountants: Grant Thornton Malaysia PLT
• Retail Underwriting Commission: Up to 1.6% of Retail Price
• Stabilization/Over-allotment (Greenshoe): Not disclosed

Deal parties are among Malaysia’s most prominent financial institutions, suggesting a high degree of institutional confidence and professional process rigor.

Business Model, Products, and Revenue Streams

SkyeChip Berhad is an integrated circuit (IC) design specialist, focusing on both standard and custom silicon intellectual properties (IPs) and custom ASIC products.

• Revenue Streams:
  • Licensable silicon IPs for integration into customer ICs
  • Custom ASIC development and product sales
  • Design services and memory test systems (smaller share)
• Business Model: Fixed lump sum contracts, milestone-based billing, revenue recognition over time by project completion percentage
• Customer Segments: Semiconductor and electronics companies globally (customer base expanded from 4 in 2023 to 18 in Oct 2025)
• Geographies: Primarily Malaysia and cross-border (specific breakdown not disclosed)

Key Products: Standard silicon IP (memory interface, Network-on-Chip), custom ASICs, and design services

Industry Landscape and Market Position

SkyeChip Berhad operates in the high-growth IC design sector, providing both standard and custom silicon IP and products for the semiconductor industry.

• Sector: Integrated Circuit (IC) design and semiconductor solutions
• Market Share/Ranking: Not quantified in the document
• Competitive Edge: Technical expertise, diversified product offering, and proven revenue growth

Financial Performance and Health: Multi-Year Review

SkyeChip Berhad demonstrates strong revenue growth, healthy profitability, and a robust cash position, with no borrowings as of the latest period end.

The company has no borrowings and a current ratio of 23.1x as at October 2025, positioning it for self-funded growth and resilience.

Market Position and Competitive Advantages

Key strengths include:

• Rapidly growing customer base (from 4 to 18 within two years)
• High gross and net margins, indicating strong pricing power and cost management
• Scalable R&D-driven model supported by government grants and internal cash flow
• Technical leadership in both standard and custom silicon IP

Management Team

SkyeChip Berhad’s senior leadership brings experience in semiconductor design and business management. Specific names and backgrounds are not detailed in the prospectus, but the company’s board and promoters have declared full responsibility for the accuracy and completeness of the disclosures.

Industry Trends, Demand Drivers, and Timing

Key sector trends and demand drivers include:

• Growth in semiconductor and electronics demand globally
• Increasing need for custom ASICs and advanced silicon IPs
• Strong government support for technology and R&D in Malaysia

Revenue increased at a robust CAGR of 44.6% from FYE 2023 to FYE 2025, driven by both standard silicon IPs and new custom ASIC products.

IPO Timing: The offer period runs from 29 April to 6/7 May 2026. The listing is anticipated for May 2026, following all regulatory approvals.

Recent Developments: The company was awarded a RM12 million grant in March 2026 for advanced packaging R&D, further strengthening its innovation pipeline.

Risk Factors: Quantified Exposures

Key risks disclosed include:

• Customer concentration: Top customers accounted for 89.6%, 81.7%, 60.5%, and 72.1% of revenue in FYE 2023, 2024, 2025, and FPE Oct 2025 respectively. Loss of any major customer could impact earnings.
• Competitive and technological risk: Failure to keep pace with innovation could erode market position.
• Regulatory and legal risk: Subject to the Financial Services Act, Islamic Financial Services Act, and CMSA; strict compliance required.
• Foreign exchange exposure: Cash and receivables are held in multiple currencies (USD, RM, RMB, SGD, VND).
• Supplier and funding risk: R&D activities depend on continued access to grants and internal cash flow.
• Contract risk: Revenue is billed by milestone; delays in execution can impact timing of cash flows.

Growth Strategy and Expansion Plans

SkyeChip Berhad is investing heavily in:

• New IC product R&D (RM155.1 million over 36 months)
• Silicon IP development (RM56.4 million over 36 months)
• Expansion of operational facilities and computing infrastructure
• Upgrading EDA and development tools
• Increasing technical staff and capabilities to drive innovation
• Maintaining a robust order book (RM130.3 million unbilled as at last practicable date)

These initiatives are expected to fuel further growth and diversification of revenue streams.

Ownership Structure, ESOS, and Lock-ups

• Pre-IPO Share Capital: 1,396,000,000 shares (after subdivision)
• Post-IPO Share Capital: 1,796,000,000 shares (after IPO)
• ESOS: Up to 15% of total shares; not yet granted
• Lock-up: Company has entered into a lock-up agreement with joint bookrunners; details apply as per Section 4.7.3
• Major shareholders and promoter details: Not explicitly disclosed in the provided sections

Valuation and Peer Comparison

Valuation metrics for SkyeChip Berhad and peers are not disclosed in the prospectus. No P/E, P/B, EV/EBITDA, or sector multiples are available for comparison.

Research Coverage and Analyst Opinions

No external analyst coverage or price targets are disclosed in the document.

IPO Allotment and Subscription Outcome

Final subscription metrics by tranche are not provided. However, the presence of substantial cornerstone and underwritten allocations indicates high confidence in successful placement and demand.

Listing Outlook: Should You Subscribe?

Based solely on prospectus disclosures, SkyeChip Berhad’s IPO offers:

• Strong revenue and profit growth, with high margins and ample cash reserves
• Large, committed allocations to cornerstone and institutional investors
• Substantial investment in R&D and expansion, positioning for long-term growth
• Dividend policy targeting up to 25% payout, offering potential yield
• High-quality deal parties and full retail underwriting, supporting listing day stability

Risks include customer concentration and the need to sustain rapid innovation. However, the company’s strong financials and expansion plans suggest robust first-day performance, likely trading at a premium to the offer price, barring adverse market conditions.

Prospectus Access

Obtain the full prospectus at: www.bursamalaysia.com

How to Apply for SkyeChip Berhad IPO Shares

Application Channels:

• Banks (Affin Bank, Alliance Bank, AmBank, CIMB, Maybank, Public Bank, RHB Bank)
• Participating securities firms and Internet platforms (including CGS International, Kenanga, UOB Kay Hian, Moomoo, Malacca Securities, iFAST Capital, Hong Leong Investment Bank)
• Application forms (White for public, Pink for eligible persons)

Key Dates:

• Application opens: 10:00 a.m., 29 April 2026
• Application closes (Retail): 5:00 p.m., 6 May 2026
• Application closes (Institutional): 5:00 p.m., 7 May 2026

Applicants must have a CDS account and comply with eligibility requirements. Application steps are detailed on the Bursa Malaysia website and in the official procedures documents.

Summary: Is SkyeChip Berhad’s IPO a Compelling Investment?

With a robust growth record, healthy margins, top-tier deal parties, and a clear expansion roadmap, SkyeChip Berhad offers investors a unique opportunity in Malaysia’s burgeoning IC design sector. The IPO’s growth-driven use of proceeds, supportive dividend policy, and strong institutional backing make it attractive for both growth and income-oriented investors. Based on all disclosed data, market conditions are favorable and the IPO appears well positioned for a strong debut.