Eco World Development to raise RM768m from placement

PETALING JAYA: Eco World Development Group Bhd (EcoWorld) is planning a private share placement exercise to raise up to RM768.39 million for EcoWorld International Bhd’s initial public offering (IPO) and future land acquisitions.
In a filing with the stock exchange yesterday, EcoWorld said it plans to place out 591.07 million new shares, which is equivalent to 25% of its existing paid-up capital, based on an indicative issue price of RM1.30 apiece.
EcoWorld shares closed at RM1.29 yesterday.
EcoWorld said a total of RM468 million or 60.9% of the capital raised will be set aside for the share acquisition at EcoWorld International’s IPO, and the balance RM297.68 million for land purchases.
Its major shareholders, Liew Tian Xiong and Sinarmas Harta Sdn Bhd, have expressed interest to subscribe up to 236.42 million and 212.78 million placement shares respectively, representing up to 10% and 9% of the existing issued and paid-up share capital of EcoWorld.
Tian Xiong is the son of EcoWorld chairman Tan Sri Liew Kee Sin. Sinarmas Harta is a wholly-owned subsidiary of Syabas Tropikal Sdn Bhd, which in turn is 99.99% owned by Ecoworld’s independent non-executive deputy chairman Datuk Leong Kok Wah.
EcoWorld plans to place out the remaining 141.85 million shares to key institutional shareholders and/or independent third party investors to be identified at a later date.