Eco World International Berhad (EWI), the overseas property arm of Eco World Development Group Bhd is scheduled to be listed in Main Market of Bursa Malaysia on the 3rd April 2017 and it will be largest initial public offer (IPO) this year.
The Initial Public Offering (IPO) consists of comprising of 2.15 billion new ordinary shares at an IPO price of RM1.20 per share. 449.5 million shares will be for institutional investors, private placement & selected investors and 408 million shares made available to the eligible directors and employees of Eco World International Berhad, Eco World Development, entitle Eco World Shareholders and Malaysian Public. The remaining shares allocated to EW Berhad and Guocoland Limited
Retail application is payable upon application but in the event the final retail price is less than RM1.20, retail investors will receive the refund on the difference. After the IPO, shareholder will receive bonus issue of two free warrants for every five Eco World International shares.
The IPO will raise about RM2.584 billion in proceeds. Out of this, RM1.37 billion is for repayment of bank borrowing and advances, RM1.13 billion for working capital and future land aquisitions and the remaining RM53 million is for listing expenses.
The IPO attract 3 cornerstone namely, Employees Provident Fund Board, Permodalan Nasional Berhad and Kumpulan Wang Persaraan (KWAP) , which have agreed to subscribe for 212,400,000 Shares in the aggregate. On top of that, GuocoLand Limited subscribed for a strategic 27% stake in EWI’s enlarged issued and paid-up share capital.
At an IPO price of RM1.20, it represent 12% premium to its net asset per share of RM1.07 and valued at 1.12 times its book value. The estimate market capitalisation of EWI will be RM2.88 billion.
Currently, the company undertake three project sites in the UK. Through its joint-venture company, EcoWorld-Ballymore, EWI is developing three waterside residential projects in the east and west of London: Embassy Gardens in Nine Elms, London City Island in Leamouth Peninsula, East London, and Wardian London in Canary Wharf.
EWI is also developing a project in Australia called West Village in Parramatta – a suburb and major business district in the metropolitan area of Sydney.
Based on valuation reports prepared by Jones Lang LaSalle and m3property, the total estimated gross development value for all four projects is about RM12.96bil.
More information regarding the company can be found in Eco World International webpage.
For the time being Eco World International does not have any fixed dividend policy.
The table below is the financial summary of Eco World International.
|FYE 2014||FYE 2015|
|Profit after Tax (RM’000)||(97,848)||(235,062)|
|Earnings per Share (sen)*||(40.3)||(96.7)|
CIMB Investment Bank and Maybank Investment Bank is the joint principle adviser, joint global coordinators, joint bookrunner, joint managing underwriter and joint underwriter for the listing exercise of the IPO.
On the Moratorium on shares, as per Securities Guidelines, the promoters of Eco World International IPO will not be able to sell, transfer or assign any part of their shareholdings for six months from the date of listing.
For those who are interested in Eco World International IPO, you may subscribe at ATM machines or via Internet Banking.
The retail subscription period is opened until 20th March 2017 at 5pm. Tentative balloting date is on 22nd March while the allotment date is on 30th March 2017. Eco World International stock name in Bursa Malaysia is “EWINT”.
View Eco World International prospectus in Bursa Malaysia webpage.
What do you think about Eco World International IPO? Are you going to subscribe?