Eco World International optimistic on their sales for FY2017

KUALA LUMPUR (March 9): Eco World International is optimistic that its sales performance will do just as well, if not better, in FY2017 than the previous year, said Eco World International Bhd (EWI) president and CEO Datuk Teow Leong Seng.

“I am not at liberty to disclose the sales target of EWI as we will be listed soon but the sales this year will come mainly from the four existing projects that we have,” said Teow after the launch of EWI’s prospectus for its initial public offering (IPO) today.

For FY2016, EWI achieved sales of RM440 million. It is developing four projects in the UK and Sydney, Australia with a total estimated gross development value of RM12.96 billion.

The three projects being undertaken by EWI in London are Embassy Gardens in Nine Elms, London City Island in Leamouth Peninsula and Wardian London in Canary Wharf, whereas the project in Sydney is called West Village in Parramatta.

The IPO is expected to raise RM2.58 billion from the issuance of 2.153 billion new shares.

The retail offering, comprising 408 million IPO shares, will represent 17% of the enlarged issued and paid-up share capital of EWI post listing.

The retail offering is RM1.20 per IPO share while the bulk of the shares offered to institutional offering would be decided via a book-building which Teow estimates to be around RM1.15 to RM1.20.

He added that the IPO will fund the existing four projects that EWI is currently undertaking with the surplus of cash leftover for future acquisitions. According to the prospectus, the funds will also be used for debt repayment, settlement of the acquisition of EWI’s investment, as working capital and/or future land acquisitions and listing expenses.

“We’ve always said that looking for new landbank is a process that we have undertaken for the past few years. The listing process does not allow us to acquire any new landbank until we are listed but come post listing, hopefully we can seal some of these deals that we are looking at,” said Teow, adding that the group will remain focused on Australia and London.

“These two places are mature, sophisticated and are global markets. They have shown proven demand, locally and internationally,” said Teow.

The shares are fully underwritten by CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and Hong Leong Investment Bank Bhd as joint managing underwriters and joint underwriters, and Alliance Investment Bank Bhd, AmInvestment Bank Bhd and RHB Investment Bank as joint underwriters.