3 Things You Need To Know About The Upcoming IPO Of Eco World International Bhd

The Securities Commission of Malaysia has recently approved Eco World International Bhd’s plans for a Malaysia listing that’s expected to take place around the months of September or October this year. It is the largest IPO in Malaysia in 2016 thus far.

Eco World International is currently partly owned by the property developers, the Malaysia-listed Eco World Development Group Bhd (KLSE: 8206.KL) and Singapore-listed GuocoLand Limited (SGX: F17).

Here are three things you might want to know about Eco World International.

Fund raising

Eco World International is planning to raise RM2.6 billion from its initial public offering. Most of the capital raised would be used to pare down its debt. Eco World Development is expected to retain a 20% to 30% stake in Eco World International after the latter’s listing.

The world of Eco World

Eco World Development is perhaps best known for its Chairman, Tan Sri Dato’ Sri Liew Kee Sin.

Liew is a well-known businessman in Malaysia who made a name for himself by building up one of the largest real estate companies in Malaysia, S P Setia Bhd (KLSE:8664.KL). After stepping down from S P Setia, Liew joined Eco World Development as its Chairman.

Eco World International will be the the international arm of Eco World Development. The former will help the latter expand its concept of property development beyond Malaysia’s shores.

Brexit is a blessing

According to Eco World International’s management, the recent vote by the United Kingdom to leave the European Union – the Brexit – might be a blessing for the company.

That’s because Eco World International finds real estate prices to be much cheaper now as a result of the drastic fall in the pound sterling. This might in turn boost demand for the company’s UK properties going forward.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.