EWI SET TO RAISE RM2.6 B FROM IPO

It will be Malaysia’s largest list­ing since Malakoff Corp’s RM2.74b in 2015

New Straits Times - - Business - ZA­RINA ZAKARIAH KUALA LUMPUR zari­naz@me­di­aprima.com.my

ECO World In­ter­na­tional Bhd (EWI) is ex­pected to raise RM2.6 bil­lion from its ini­tial pub­lic of­fer­ing (IPO), which will be Malaysia’s largest since Malakoff Corp Bhd’s RM2.74 bil­lion IPO in mid2015.

EWI’s IPO far ex­ceeds the 11 new list­ings on Bursa Malaysia last year that raised less than RM1 bil­lion in to­tal. How­ever, it was a far cry from the RM4.7 bil­lion and RM4.1 bil­lion raised in 2015 and 2014, re­spec­tively.

EWI yes­ter­day launched its prospec­tus in­volv­ing 2.15 bil­lion new shares, of which the re­tail of­fer­ing will close on March 20, with the list­ing set next month.

Pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Teow Leong Seng said part of the IPO pro­ceeds would be used to fund its projects in the United King­dom and Aus­tralia.

“The re­tail IPO will be priced at RM1.20 per share while shares un­der the in­sti­tu­tional of­fer­ing will be be­tween RM1.15 and RM1.20 per share.

“About half of our in­sti­tu­tional of­fer­ings have been taken up by three cor­ner­stone in­vestors — Per­modalan Na­sional Bhd, Em­ploy­ees Prov­i­dent Fund and Re­tire­ment Fund Inc.

“We will use the sur­plus from the IPO pro­ceeds to fi­nance fu­ture ac­qui­si­tions in ad­di­tion to our four de­vel­op­ment projects in the UK and Aus­tralia,” he said.

Of the 2.15 bil­lion new shares, 408 mil­lion are for re­tail in­vestors. The re­tail of­fer­ing rep­re­sents 17 per cent of the en­larged is­sued and paid-up cap­i­tal of EWI.

Teow said EWI would re­main fo­cused on the UK and Aus­tralian mar­kets.

“We will still fo­cus on Lon­don (in the UK) and Aus­tralia as we think both mar­kets are ma­ture and so­phis­ti­cated.”

EWI re­cently inked a share sub­scrip­tion agree­ment with Guo­coLand Ltd, which will take up a 27 per cent stake in the com­pany.

The three cor­ner­stone in­vestors will take up 212.4 mil­lion shares, or about half of the 18 per cent of EWI’s in­sti­tu­tional of­fer­ing of 449.46 mil­lion new shares.

In the UK, EWI is un­der­tak­ing three water­side res­i­den­tial projects — Em­bassy Gar­dens in Nine Elms, Lon­don City Is­land in Leamouth Penin­sula, East Lon­don and Wa­dian Lon­don in Ca­nary Wharf through a joint ven­ture called Eco WorldBal­ly­more.

In Aus­tralia, EWI is de­vel­op­ing a project in Par­ra­matta, a sub­urb and ma­jor busi­ness district in the metropoli­tan area of Syd­ney.

The to­tal es­ti­mated gross de­vel­op­ment value for all four projects is RM12.96 bil­lion.

We will still fo­cus on Lon­don (in the UK) and Aus­tralia as we think both mar­kets are ma­ture and so­phis­ti­cated.” DATUK TEOW LEONG SENG Pres­i­dent and chief ex­ec­u­tive of­fi­cer

Page 1 pic: (From left) Eco World In­ter­na­tional Bhd (EWI) ex­ec­u­tive vice-chair­man Tan Sri Liew Kee Sin, se­nior in­de­pen­dent non-ex­ec­u­tive di­rec­tor Tan Sri Azlan Mohd Zainol and pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Teow Leong Seng at the launch of EWI’s prospec­tus in Kuala Lumpur yes­ter­day. PIC BY HALIM

SALLEH

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