By Sharen Kaur
KUALA LUMPUR: ECO World Development Group Bhd, which has projects worth almost RM62 billion, will enter a new growth phase with a total of RM2.8 billion raised from a corporate exercise.
The Main Market-listed developer has completed the last leg of its corporate exercise following a 20 per cent share placement to institutional investors, which has raised RM638.35 million.
Its earlier subscription of shares and rights issues with warrants were completed in February and March, respectively.
President and chief executive officer Datuk Chang Khim Wah said with the completion of the entire exercise, Eco World was wellplaced to forge ahead with its growth and expansion plans to achieve its RM7 billion sales target for this year and next.
Eco World has accumulated 2,122.57ha of landbank with a total remaining gross development value of RM61.2 billion to be developed.
The group has presence in the Klang Valley, Iskandar Malaysia in Johor and Penang with a total of 15 projects that comprise affordable, upgrader and luxury homes, integrated high-rise developments and green business parks.
Through its associates, the Eco World brand has also extended to the United Kingdom and Australia with several exciting developments in London and Sydney lined up for launches this year.
Eco World is expected to list its special-purpose acquisition company (SPAC), Eco World International Bhd, in the second half of this year.
The SPAC, which will raise funds to acquire the assets in London and Sydney as well as other potential properties, is expected to raise about RM1.5 billion.
Eco World has proposed to subscribe for a 30 per cent stake in the enlarged paid-up capital of the SPAC upon completion of the latter's listing for an indicative consideration of RM562.5 million.
Meanwhile, the 20 per cent share placement will see 394.04 million new shares issued at a subscription price of RM1.62 each. This represents an 8.5 per cent discount to Eco World shares' closing price of RM1.77 on Thursday.
The issue price also represents a discount of 9.86 per cent to Eco World's five-day volume weighted average market price of RM1.79 up to and including Thursday.
In a statement yesterday, Eco World said the share placement was subscribed 1.41 times, with significant orders from long-term institutional investors.
The exercise had attracted strong demand from local and foreign investors, it added.
Eco World chairman Tan Sri Liew Kee Sin said the 1.41 times subscription indicated a strong vote of confidence in EcoWorld by institutional investors, given the current tough market condition.
The stock closed two sen higher at RM1.95 yesterday.
KUALA LUMPUR: ECO World Development Group Bhd, which has projects worth almost RM62 billion, will enter a new growth phase with a total of RM2.8 billion raised from a corporate exercise.
The Main Market-listed developer has completed the last leg of its corporate exercise following a 20 per cent share placement to institutional investors, which has raised RM638.35 million.
Its earlier subscription of shares and rights issues with warrants were completed in February and March, respectively.
President and chief executive officer Datuk Chang Khim Wah said with the completion of the entire exercise, Eco World was wellplaced to forge ahead with its growth and expansion plans to achieve its RM7 billion sales target for this year and next.
Eco World has accumulated 2,122.57ha of landbank with a total remaining gross development value of RM61.2 billion to be developed.
The group has presence in the Klang Valley, Iskandar Malaysia in Johor and Penang with a total of 15 projects that comprise affordable, upgrader and luxury homes, integrated high-rise developments and green business parks.
Through its associates, the Eco World brand has also extended to the United Kingdom and Australia with several exciting developments in London and Sydney lined up for launches this year.
Eco World is expected to list its special-purpose acquisition company (SPAC), Eco World International Bhd, in the second half of this year.
The SPAC, which will raise funds to acquire the assets in London and Sydney as well as other potential properties, is expected to raise about RM1.5 billion.
Eco World has proposed to subscribe for a 30 per cent stake in the enlarged paid-up capital of the SPAC upon completion of the latter's listing for an indicative consideration of RM562.5 million.
Meanwhile, the 20 per cent share placement will see 394.04 million new shares issued at a subscription price of RM1.62 each. This represents an 8.5 per cent discount to Eco World shares' closing price of RM1.77 on Thursday.
The issue price also represents a discount of 9.86 per cent to Eco World's five-day volume weighted average market price of RM1.79 up to and including Thursday.
In a statement yesterday, Eco World said the share placement was subscribed 1.41 times, with significant orders from long-term institutional investors.
The exercise had attracted strong demand from local and foreign investors, it added.
Eco World chairman Tan Sri Liew Kee Sin said the 1.41 times subscription indicated a strong vote of confidence in EcoWorld by institutional investors, given the current tough market condition.
The stock closed two sen higher at RM1.95 yesterday.
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