BY TOH KAR INN
Bursa bound: (from left) Eco World International Bhd (EWI) executive vice-chairman Tan Sri Liew Kee Sin, chairman Tan Sri Azlan Mohd Zainol, and president and CEO Datuk Teow Leong Seng at the group’s prospectus launch. EWI is targeting to raise some RM2.58bil from its IPO.
KUALA LUMPUR: Eco World International Bhd (EWI), the largest initial public offering (IPO) on Bursa Malaysia the year, has thrown in a sweetener for its potential investors.
The group is targeting to raise some RM2.58bil from its IPO, of which 52.9% or RM1.37bil will be used for debt repayment within six months, while RM1.13bil or 43.6% will be earmarked for working capital to fund EWI’s existing four projects, namely, Wardian, Embassy Gardens and London City Island in London, as well as West Village in Parramatta, Sydney.
“We have been looking at several prospective landbanks, which we hope to seal some deals post-listing.
“Any new acquisitions of land will be funded by cash left over from the IPO,” said Teow at the launch.
The group will continue to focus on securing landbank in London and Australia, due to the mature and sophisticated global market in these two countries, along with the proven demand for property.
In fact, half of EWI’s purchasers for its London projects are international buyers.
EWI signed a share subscription agreement with Tan Sri Quek Leng Chan’s GuocoLand Ltd, whereby the latter will take up a 27% stake in EWI’s enlarged issued and paid-up capital.
GuocoLand will act as the co-anchor in the IPO and strategic investor, giving it the right of first refusal to partner the developer in projects in Singapore, China and Britain.
Parent company Eco World Development Group Bhd is the other co-anchor and strategic investor, also with a 27% stake.
Eco World group chairman Tan Sri Liew Kee Sin will hold a direct 10.3% stake in EWI .
EWI, which has already started on its overseas projects more than a year ago, does not have a sales target this year.
“We expect to do just as well as last year, if not better than last year,” said Teow.
As of Dec 31, 2016, EWI chalked up a sales of RM6.3bil. The bulk of the sales are fromits current four projects.
The retail offering of shares opened yesterday and closes on March 20 at 5pm.
Follow us on Wechat or Facebook for the latest updates.
Download StarProperty.my e-Mag(bit.ly/StarProperty_Emag) for more articles.
Want to contribute articles to StarProperty.my? Email editor@starproperty.my.
[slider id='81590' name='StarProperty' size='full']
