KUALA LUMPUR, April 28 — Eco World Development Group Bhd has proposed to undertake a private placement to raise up to RM768.39 million for EW International Bhd’s initial public offering (IPO).
In a filing to Bursa Malaysia today, the property developer said it planned to place out 591.07 million new shares, which is equivalent to 25% of its existing paid-up capital, to raise as much as RM768.39 million, based on an indicative issue price of RM1.30 each.
“A total of RM468 million of the proceeds will be set aside to part finance the company’s subscription for EW International’s shares,” it said.
Eco World said its executive director and major shareholder, Liew Tian Xiong (LTX) had given his undertaking to subscribe for up to 236.42 million of the placement shares, subject to the availability of external financing at the point of implementation of the proposed placement.
In addition, its major shareholder, Sinarmas Harta Sdn Bhd, also intends to subscribe for up to 212.78 million placement shares while the remaining 141.86 million shares will be placed to key institutional investor (s) to be identified at a later date.
Eco World said in the event the 141.86 million shares were not fully taken up by third party investors, LTX had expressed his interest in subscribing for this tranche.