EcoWorld raises RM2.8 bil for expansion plans

PETALING JAYA (May 8): Following a 20% share placement with institutional investors and the completion its corporate exercise yesterday, EcoWorld Development Group Bhd has raised some RM2.8 billion in total proceeds.

"The fact that we received 1.41 times subscription for a 20% placement of shares even under the present tough market conditions is a strong vote of confidence in EcoWorld by institutional investors,” said EcoWorld chairman Tan Sri Liew Kee Sin in a statement today.

The funds were raised together with an earlier subscription of shares and rights issues with warrants in February and March 2015, respectively.

EcoWorld will be issuing 394,044,000 new shares, representing about 20% of its issued and paid-up share capital, pursuant to the book-building exercise.

Meanwhile, EcoWorld president and CEO Datuk Chang Khim Wah said the group has accumulated 5,245 acres of landbank with a total remaining gross development value (GDV) of RM61.2 billion.

Announcing new launches over the next few months, Chang said: "In Penang, we have Eco Terraces (GDV: RM340 million, 12.8 acres). In the Klang Valley, we will be introducing our luxury Eco Sanctuary township (GDV: RM8 billion, 308 acres); and in Iskandar Malaysia we will be unveiling Eco Business Park III (GDV: RM2 billion, 248 acres) and Eco Tropics (GDV: RM3.4 billion, 743.6 acres) in the Pasir Gudang growth corridor before the end of this financial year."

He said the group is confident of hitting its RM7 billion sales target for FY2015 and FY2016. 

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