Eco World International Bhd (EWI) is positive that it can secure more institutional investors in its initial public offering (IPO), reported the Sun Daily.
Its President and Chief Executive Datuk Teow Leong Seng recently revealed that they had signed up cornerstone investors — Permodalan Nasional Bhd (PNB), Employees Provident Fund Board (EPF), and Kumpulan Wang Persaraan (Diperbadankan) (KWAP).
The three companies have agreed to subscribe a total of 212.4 million shares, which translates to 47 percent of the maximum institutional offering of 449.459 million stocks.
Overall, EWI will issue 2.153 billion new shares, which account for 89.7 percent of EWI’s enlarged paid-up capital. The remaining 10.3 percent is owned by Tan Sri Liew Kee Sin.
“The IPO involves strategic investors namely Eco World Development Group Bhd and GuocoLand Ltd holding 1.296 billion shares comprising 54 percent in total; a retail offering of 408 million new shares comprising 17 percent; and institutional offering of 449 million shares comprising 18.7 percent,” noted Teow.
The retail offering that will close on 20 March has already been priced at RM1.20 per share. Of the 408 million shares, two percent or 48 million units have been set aside for the Malaysian public.
Meanwhile, the institutional offering is scheduled to close on the next day. Its price, which ranges between RM1.15 and RM1.20 per share, will be determined via book building.
Based on the prospectus, the final retail price will be equivalent to RM1.20 or the institutional price, whichever is lower. There will also be a bonus issue of two free EWI warrants for every five EWI shares owned after the listing.
The IPO on 3 April 2017 is anticipated to raise around RM2.6 billion in gross proceeds, part of which will be used to finance the construction of four ongoing projects in the UK and Australia, with a combined gross development value of RM12.96 billion.
EWI will also the use the cash left from the listing and borrow money to acquire some land in Australia and London. It will also consider redeveloping some hotels in the UK capital that are run by GuocoLand.
More Eco World Projects:
1. Lucentia Residences Bukit Bintang
2. Terraza Residences, Eco Sanctuary
3. Monterey Residences Eco Sanctuary
Image sourced from The Star
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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