Eco World to raise RM2.58 billion from IPO

KUALA LUMPUR: Eco World International Bhd aims to raise gross proceeds of about RM2.58 billion from its initial public offerings (IPO), said President/ Chief Executive Officer Datuk Teow Leong Seng.

“The company will issue up to about 2.15 billion new shares. The retail offering, which comprises 408 million IPO shares, will represent 17 per cent of the enlarged issued and paid-up capital of Eco World, post-listing,” he said at the launch of the company’s prospectus yesterday.

Teow said the retail offering is priced at RM1.20 per share.

He said 52.9 per cent of the IPO proceeds would be used to repay debt within six months, amounting to RM1.37 billion, and 43.6 per cent (RM1.13 billion) would be used for working capital and/or future land acquisition.

The remaining proceeds have been allocated for the settlement of Eco World Investment’s acquisition and estimated listing expenses, he said.

Out of 17 per cent allocated for retail offering, 240 million were placed for entitled shareholders of Eco World Development Group Bhd, 120 million shares for directors and eligible employees of Eco World and Eco World Development while the remaining 48 million shares were allocated for the public.

Eco World has also signed a share subscription agreement with GuocoLand Ltd for a strategic 27 per cent stake in the group’s enlarged issued and paid-up share capital.

It has also signed a cornerstone placement agreement with the Employees Provident Fund (EPF) Board, Permodalan Nasional Bhd (PNB) and Kumpulan Wang Persaraan (Diperbadankan), which have agreed to subscribe for 212.4 million shares in the aggregate.

Teow said the institutional offering share price was expected to be in the range of RM1.15 and RM1.20 per share.

“We started a roadshow process (for the IPO) early this year, covering Kuala Lumpur, Singapore and Hong Kong, and, it has brought good results so far, bringing in PNB, KWAP and EPF into agreement,” he said.