BY JOSEPH CHIN
KUALA LUMPUR: Eco World International Bhd – one of the largest IPO in recent years -- staged a strong debut on the Main Market of Bursa Malaysia on Monday, opening at RM1.31, which was 11 sen above its retail offer price of RM1.20.
At 9.01am, it was trading at RM1.35, up 15 sen with 29.30 million shares done.
The warrants surged to 30.5 sen, up 30 sen with 4.57 million units done.
The FBM KLCI was up 2.14 points to 1,742.23. Turnover was 146.44 million shares done valued at RM75.19 million shares. There were 157 gainers, 61 losers and 200 counters unchanged.
EWI issued to all of its shareholders two free warrants for every five shares held after the IPO
Kenanga Investment Bank Research had a target price of RM1.33 which was 23% below is fully diluted sum-of-parts of RM1.72 which includes gross development value (GDV) replenishments of RM8bil.
The EWI IPO raised RM2.58bil based on 2.15 billion shares at a retail price of RM1.20 out of the enlarged share base of 2.40 billion shares, implying a market capitalisation of RM2.88bil, which it deems as large cap developer.
The IPO comes with a bonus warrant issue of up to 960 million. Utilisation of proceeds is mainly for debt repayment, working capital and future land acquisitions.
Its key shareholders are Tan Sri Liew Kee Sin (10.3%), Eco World Development Group Bhd (27.0%) and Guocoland (27.0%). Leading the management team are Liew (executive vice chairman) and Datuk Teow Leong Seng (ED/president & CEO) who are known for previously managing SP Setia.
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