KUALA LUMPUR: Eco World International Berhad (EcoWorld International) today announced the signing of 3 key agreements which kicks-off its Initial Public Offering (IPO) process:

• The first is a Share Subscription Agreement with GuocoLand Limited (GuocoLand) in which GuocoLand agrees to take up a strategic 27% stake in EcoWorld International’s enlarged issued and paid-up capital based on the terms and conditions of the agreement.The Share Subscription Agreement entered into today is a follow-through on the Shareholders’ Agreement dated 27 October 2016 between Eco World Development Group Berhad (EcoWorld Malaysia), GuocoLand and Tan Sri Liew Kee Sin to regulate their relationship with one another as major shareholders of EcoWorld International going forward.
• Secondly, a Retail Underwriting Agreement was signed with CIMB Investment Bank Berhad (CIMB), Maybank Investment Bank Berhad (Maybank) and Hong Leong Investment Bank Berhad, as joint managing underwriters and joint underwriters, and Alliance Investment Bank Berhad, AmInvestment Bank Berhad and RHB Investment Bank Berhad, as joint underwriters.Pursuant to the Retail Underwriting Agreement, the 6 banks will underwrite EcoWorld International’s entire Retail Offering comprising 408,000,000 IPO Shares, representing 17.0% of its enlarged issued and paid-up share capital, on the terms and conditions set out in the agreement.
• Finally, a Master Cornerstone Placement Agreement was entered into with the IPO’s Joint Global Coordinators, namely CIMB and Maybank, and EPF and PNB as Cornerstone Investors.The Cornerstone Investors have agreed to subscribe an aggregate of 140.4 million IPO Shares representing more than 30% of the IPO Shares allocated as part of the Institutional Offering, subject to the terms and conditions set out in the Master Cornerstone Placement Agreement.

Earlier today, EcoWorld Malaysia had also announced that it had obtained its shareholders’ approval for the subscription for its 27% stake in EcoWorld International and for its entry into the Collaboration Agreement with EcoWorld International as well as the Shareholders’ Agreement with GuocoLand and Tan Sri Liew.

Chairman of EcoWorld Malaysia, Tan Sri Liew said “We would like to thank EcoWorld Malaysia’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 EcoWorld International of around RM 6.49 billion as at 31 January 2017,” he said.

As a gesture of appreciation to EcoWorld Malaysia’s shareholders, EcoWorld International had applied for and obtained the Securities Commission Malaysia’s approval for 10% of EcoWorld International’s enlarged issued and paid-up share capital to be allocated to shareholders of EcoWorld Malaysia by way of a restricted offer in conjunction with the IPO. This will give EcoWorld Malaysia’s shareholders a preferential allocation of the IPO shares, with the amount to be allocated based on their shareholding percentage in EcoWorld Malaysia.

Dato’ Teow Leong Seng, President & CEO of EcoWorld International 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 EcoWorld Malaysia on the entitlement date of 6 March 2017.

5% of EcoWorld International’s enlarged issued and paid-up share capital has similarly been allocated to directors & employees of both EcoWorld International & EcoWorld Malaysia to recognise their contributions to EcoWorld International’s success to date.

The balance of the Retail Offering, comprising 48 million shares, representing 2% of EcoWorld International’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 EcoWorld Malaysia’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 EcoWorld Malaysia 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 EcoWorld International’s IPO as Cornerstone Investors. EPF have been a strong and supportive institutional shareholder as well as joint-venture partner of EcoWorld Malaysia 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 EcoWorld International 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 process – we look forward to a successful conclusion of the IPO within the next 2 months.”