Guo­coLand-Eco World deal re­moves IPO un­cer­tainty due to Brexit: MIDF

The Sun (Malaysia) - - SUNBIZ -

PETAL­ING JAYA: The emer­gence of Sin­ga­pore-listed Guo­coLand Ltd as a strate­gic in­vestor in Eco World In­ter­na­tional Bhd’s (EWI) up­com­ing ini­tial pub­lic of­fer­ing (IPO) has re­moved the IPO un­cer­tainty due to the Brexit, said MIDF Re­search.

Last Thurs­day, EWI an­nounced that Guo­coLand will sub­scribe for a 27% stake in EWI.

Ke­nanga Re­search be­lieves EWI is poised to ben­e­fit from the syn­er­gies and strengths from Guo­coLand and Eco World.

Guo­coLand is part of the Hong Leong Group. It has pres­ence in Sin­ga­pore, China, Hong Kong, Viet­nam.

MIDF Re­search said, in the long run, Eco World’s sales will ben­e­fit from EWI’s IPO as it will be able to book in the 27% share of sales and profit from EWI’s in­ter­na­tional busi­ness.

MIDF Re­search is main­tain­ing a “buy” call on Eco World with a tar­get price of RM1.68.

Ke­nanga Re­search, which is also re­it­er­at­ing its “out­per­form” call on Eco World with a tar­get price of RM1.58, said it is pos­i­tive on the progress of EWI list­ing given that EWI has al­ready com­menced sale and op­er­a­tions of its over­seas prop­erty de­vel­op­ments.

“We con­tinue to like Eco World for its ex­cel­lent sales achieve­ment, su­pe­rior earn­ings growth prospects and strong brand­ing. A key cat­a­lyst will be the suc­cess­ful achieve­ment of sales tar­get and earn­ings de­liv­ery,” it said.

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