KUALA LUMPUR: ECO World International Bhd’s (EWI) listing may be pushed to September as it continues to court potential cornerstone investors, said sources close to Eco World Development Group Bhd.
Business Times understands that Employees Provident Fund (EPF), Permodalan Nasional Bhd, Retirement Fund Inc and Tabung Haji are looking at investing in EWI.
EWI’s initial public offering (IPO), which had been expected to take place next month, was also attracting overwhelming interest from foreign investors, said the sources.
“Eco World is pushing back the IPO to get cornerstone investors in. It is in talks with several entities that it hopes will buy a minimum five per cent of EWI shares each. The IPO is expected to raise some RM2.7 billion,” said one of the sources.
Eco World obtained regulatory approval last month for the proposed IPO.
EWI is controlled by Tan Sri Liew Kee Sin and former SP Setia Bhd acting president and chief executive officer Datuk Voon Tin Yow.
The IPO will consist of up to 2.15 billion shares, which represent about 89.7 per cent of EWI’s enlarged, issued and paid-up share capital.
Of that, up to 1.03 billion shares will be for institutional offerings (local and foreign), while 408 million shares will be for retail, including 120 million shares reserved for application by its directors and 240 million shares for entitled shareholders of Eco World.
The IPO is set to be the largest on Bursa Malaysia this year.
Eco World will hold up to 30 per cent of EWI shares after the IPO.
Liew, who is chairman of Eco World, will have around 10 per cent direct stake in EWI, post-listing.
It was reported that Malaysia’s third richest man, Tan Sri Quek Leng Chan, who controls Hong Kong-listed Guoco Group Ltd, was eyeing up to a 30 per cent stake in EWI.
Sources said the entry of Quek and local institutional funds, especially EPF, would enhance EWI overall.
“Quek is a very shrewd investor. His entry means he has a lot of trust in both Eco World and EWI. With Quek coming in, as well as local and foreign funds, it will boost investor appeal for EWI.
“As it is, there is already a lot of interest from local and foreign institutional funds which are eyeing EWI for long-term gains. Since local funds are not encouraged to invest overseas, they are looking at investing in EWI which has exposure in the foreign markets,” he said.
EWI was set up in 2013 to acquire real estate overseas for development. It owns a 75 per cent stake in Eco World Ballymore Holding Co Ltd, which was bought in 2013 for £429 million (RM2.5 billion).
EcoWorld Ballymore has three residential projects in London — Embassy Gardens, Wardian London and London City Island — with total gross development value of about £2.3 billion.
EWI also has a project called West Village in Parramatta, Sydney worth around RM950 million.
It is understood that the four projects have cumulative sales of more than £850 million.