KUALA LUMPUR: Eco World International Berhad (EWI) today announced the signing of 3 key agreements which kicks-off its Initial Public Offering (IPO) process:
This signing of these agreements will be followed by the issuance by EWI of its prospectus in respect of the IPO (“Prospectus”), which is expected in March 2017. Pursuant to the IPO, EWI expects to issue up to approximately 2.153 billion new shares (IPO Shares).
Earlier today, EW Berhad had also announced that it had obtained its shareholders’ approval for the subscription for its 27% stake in EWI and for its entry into the Collaboration Agreement with EWI as well as the Shareholders’ Agreement with GuocoLand and Tan Sri Liew.
Chairman of EW Berhad, Tan Sri Liew said “We would like to thank EW Berhad’s shareholders, directors and Team EcoWorld for their unwavering support and outstanding efforts in building up the ‘EcoWorld’ brand which have contributed significantly to the strong sales achieved by EWI of around RM 6.49 billion as at 31 January 2017,” he said.
As a gesture of appreciation to EW Berhad’s shareholders, EWI had applied for and obtained the Securities Commission Malaysia’s approval for 10% of EWI’s enlarged issued and paid-up share capital to be allocated to shareholders of EW Berhad by way of a restricted offer in conjunction with the IPO. This will give EW Berhad’s shareholders a preferential allocation of the IPO shares, with the amount to be allocated based on their shareholding percentage in EW Berhad.
Dato’ Teow Leong Seng, President & CEO of EWI highlighted that in order to be eligible to apply for the IPO Shares pursuant to this restricted offer, the name of the shareholder must appear in the record of depositors of EW Berhad on the entitlement date of 6 March 2017.
5% of EWI’s enlarged issued and paid-up share capital has similarly been allocated to directors & employees of both EWI & EW Berhad to recognize their contributions to EWI’s success to date.
The balance of the Retail Offering, comprising 48 million shares, representing 2% of EWI’s enlarged issued and paid-up share capital, has been set aside for the Malaysian public to apply for the IPO Shares, which will be allocated by way of a balloting process.
Commenting on the IPO’s progress, Teow said: “Now that we have inked the 3 key agreements, which together with EW Berhad’s subscription agreement covers around 85.6% of the New IPO Shares, we can confidently say that the IPO is off to a very good start.”
“We are extremely heartened by the strong support shown to us by every party involved in our listing journey, beginning with the authorities, Securities Commission Malaysia and Bursa Malaysia Securities Berhad, as well as our advisers who have worked tirelessly to get us to this stage. We would also like to thank our bankers who have turned out in full force to lend us their balance sheets as underwriters, GuocoLand for coming in as a Strategic Investor to co-anchor the IPO with EW Berhad and our Cornerstone Investors for their faith in us.”
Tan Sri Liew added “Our appreciation also goes to EPF and PNB for their confirmation that they will be participating in EWI’s IPO as Cornerstone Investors. EPF have been a strong and supportive institutional shareholder as well as joint-venture partner of EW Berhad from the very outset and we would not have been able to come so far so fast without them backing us all the way. We hope that post-listing EWI will be able to forge a similarly strong relationship with both EPF and PNB as we seek to take the EcoWorld brand to greater heights beyond Malaysian shores.”
Teow went on to inform that the Institutional Offering has garnered strong preliminary interest, saying “Over the last few weeks we have met a number of institutional investors who have expressed their interest in participating in the IPO during the book-building.