EWI SET TO RAISE RM2.6 B FROM IPO
It will be Malaysia’s largest listing since Malakoff Corp’s RM2.74b in 2015
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