Eco World International gets SC nod for listing

KUALA LUMPUR: Eco World International Bhd (EWI) has obtained approval of the Securities Commission Malaysia (SC) for its proposed initial public offering (IPO) and listing on the Main Market of Bursa Malaysia Securities Bhd.
The proposed IPO will involve the issuance of up to 2.15 billion new ordinary shares of RM1 each in EWI representing up to 89.7% of its enlarged issued and paid-up share capital. There will also be a bonus issue of up to 960 million free warrants in EWI on the basis of two warrants for every five shares held after the IPO.
“The approval of the SC is a significant milestone in EWI’s journey to become a listed entity. We look forward to completing the whole exercise by mid-2016. Once we are listed we will be placed on a much stronger footing to grow our business internationally and take advantage of attractive new development opportunities, which may be presented to us both in the UK and Australia,” EWI executive vice chairman Tan Sri Liew Kee Sin said in a statement.
EWI had previously set a target of raising RM2 billion in its IPO.
Proceeds from the IPO will be used primarily for on-going working capital of the group’s projects in the UK and Australia and to repay borrowings undertaken to part-finance among others, land and related acquisition costs and project development expenditures.
EWI’s projects in London, UK and Parramatta (West Sydney), Australia have garnered cumulative sales of £712.5 million (RM3.92 billion) as at Jan 31, 2016.
“We are also gaining a good international following, which bodes well for our efforts to make EcoWorld a truly global property brand,” said EWI president and CEO Datuk Teow Leong Seng.
As at Jan 31, 2016, customers that contributed to the sales secured comprise a strong mix of local home country buyers and international property purchasers. For EWI’s group projects in London, 52% of the sales came from UK-based purchasers followed by 28% from Malaysia and Singapore and 15% from China and Hong Kong.
EWI’s Sydney project was similarly strongly supported by Australian purchasers who made up 46% of its customers, Malaysians and Singaporeans who contributed 25% while buyers from China and Hong Kong comprised 21% of sales achieved.
With all four projects launched and sales progressing well, the IPO will enable institutional and retail investors to invest directly in an international property developer that offers an attractive portfolio of existing development projects in the UK and Australia. As a listed entity, EWI’s profile and visibility will also be enhanced thereby increasing the group’s global competitiveness.
Eco World Development Group has made known its intention to subscribe up to a 30% stake in EWI in conjunction with its proposed IPO.