Malaysia’s first property SPAC Eco World International aims for 3Q listing

KUALA LUMPUR (April 24): Eco World Development Group Bhd aims to list its Eco World International Bhd (EWI) special purpose acquisition company (SPAC) in 3Q, said Eco World chairman Tan Sri Liew Kee Sin (pictured) in The Edge Financial Daily today.

Having submitted the SPAC’s listing application end of last year, the group expects to receive the Securities Commission (SC) Malaysia’s approval by June for EWI to list on the Main Market of Bursa Malaysia in 3Q.

Liew said the group has faced difficulties getting approval for the SPAC’s listing, given that “we are the pioneers” of property SPACs in Malaysia.

“There is a lot of regulatory compliance that we have to follow. I don’t think we are the only one that is slow, I think every SPAC’s listing is slow,” Liew told journalists on the sidelines of Invest Malaysia Kuala Lumpur yesterday.

Group chief financial officer Datuk Heah Kok Boon noted that all currently listed SPACs are oil and gas companies, and he said the reason that SC’s approval is taking a long time could be due to EWI being a property SPAC, which is the first of its kind in Malaysia.

According to the report, Eco World had applied for the first property SPAC, which will be led by former S P Setia Bhd senior management, to list on Bursa to raise some RM1.87 billion for its venture overseas.

The group had expressed its interest in subscribing to 30% of EWI’s enlarged issued capital for RM562.5 million, whereby the stake comprises 1.125 billion EWI shares at an indicative issue price of 50 sen apiece that comes with 1.125 billion free detachable warrants, the report said.

Meanwhile, Heah said that as Eco World is still in its growth phase, it will not propose any dividend for its shareholders for the next two to three years but instead will be focusing on its future growth.

In addition, it is undertaking several corporate exercises, including a proposed rights issue with warrants and a 20% proposed private placement to fund all the acquisitions and future working capital of the group, he said.