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EcoWorld International Berhad’s Initial Public Offering of 2,153,459,200 New Ordinary Shares at RM1.20 Each

Mar 2017Malaysia

KUALA LUMPUR: Eco World International Berhad (EcoWorld International) is pleased to announce that it has completed the balloting of applications for the 48,000,000 IPO Shares offered under the retail offering to the Malaysian public.

Following the close of the institutional offering of 449,459,200 IPO Shares to Malaysian and foreign institutional and selected investors (“Institutional Offering”), the IPO price has been fixed at RM1.20 per IPO Share (“IPO Price”). As the IPO Price is equal to the retail price as set out in the Prospectus dated 9 March 2017 issued by EcoWorld International (“Prospectus”), no refund will be made to the successful retail applicants.

Based on RM1.20 per IPO Share, EcoWorld International’s IPO will be the largest in Malaysia since June 2015, with its RM2,584.2 million offering attracting substantial interest from international and Malaysian investors alike, as evidenced by its institutional book being 9 times covered.

The institutional offering involves the issuance of 449,459,200 IPO Shares at the Institutional Price, and were allocated in the following manner: (i) an aggregate of 212,400,000 IPO Shares to 3 cornerstone investors, namely Permodalan Nasional Berhad, Kumpulan Wang Persaraan (Diperbadankan) and Employees Provident Fund Board (representing 47.3% of the institutional offering and about 8.9% of the enlarged issued and paid-up share capital of EcoWorld International); and (ii) the remaining 237,059,200 IPO Shares to Malaysian and foreign institutional and selected investors.

Under the retail offering, 408,000,000 IPO Shares were allocated in the following manner: (i) 120,000,000 IPO Shares to Eligible EcoWorld International Persons and Eligible Eco World Development Group Berhad (“EcoWorld Malaysia”) Persons (as defined in the Prospectus); (ii) 240,000,000 IPO Shares to Entitled Shareholders of EcoWorld Malaysia (as defined in the Prospectus) by way of a restricted offering; and (iii) 48,000,000 IPO Shares to the Malaysian public via balloting.

The IPO Shares reserved for Entitled Shareholders of EcoWorld Malaysia were fully subscribed and a total of 23,568 applications for 473,657,300 IPO Shares were received from the Malaysian public, representing an oversubscription rate of 8.87 times. Pursuant to the terms of the Prospectus, 21,797,000 IPO Shares initially reserved for the Eligible EcoWorld International Persons and EcoWorld Malaysia Persons were made available to the Malaysian public.

In conjunction with the IPO and as an incentive to the shareholders of EcoWorld International, subsequent to the IPO, EcoWorld International will issue to all of its shareholders 2 free warrants in EcoWorld International (“Warrants”) for every 5 Shares held after the IPO, and such bonus issue of Warrants will be completed prior to the listing. All Notices of Allotment will be mailed to successful applicants on or before 31 March 2017.

Commenting on the response toward the IPO, EcoWorld International’s President/Chief Executive Offer, Dato’ Teow Leong Seng, remarked that, “We are overwhelmed by the strong support and interest we have received for the IPO from both institutional and retail investors. This gives us the best possible start as a newly listed entity – the faith and confidence which our investors have placed in us will definitely spur us on to grow our business and scale to greater heights post-listing.”

“Our existing projects in London and Sydney are performing well and as of 31 January 2017, we have secured total sales of RM6.49 billion out of a total estimated gross development value (“GDV”),” Teow said.

“With strong strategic investors on board and wide-spread support from the investing community, we believe that EcoWorld International is positioned to establish ourselves as an international property developer of choice going forward,” he added.

For this IPO, CIMB Investment Bank Berhad and Maybank Investment Bank Berhad are Joint Principal Advisers, Joint Global Coordinators, Joint Bookrunners, Joint Managing Underwriters and Joint Underwriters.

Hong Leong Investment Bank Berhad is a Joint Principal Adviser, Joint Bookrunner, Joint Managing Underwriter and Joint Underwriter.

UOB Kay Hian Securities (M) Sdn Bhd is a Joint Bookrunner.

Alliance Investment Bank Berhad, AmInvestment Bank Berhad and RHB Investment Bank Berhad are Joint Underwriters.