Eco World's Q1 pre-tax profit jumped to RM31.16mil from RM5.63mil.
KUALA LUMPUR: Eco World Development Group Bhd
has proposed to place out 591.06 million new shares or 25% of its paid-up to raise up to RM768.3mil.
The property developer said on Thursday the shares would be placed out at RM1.30 a share.
Eco World said that RM468mil of the proceeds would be used to to part finance its subscription for Eco World International Berhad (EWI) shares pursuant to EWI’s initial public offering.
The other RM297.68mil wouid be for future land acquisitions and/ or land acquisitions which have been announced but are pending completion and general working capital for on-going development project.
The remaining RM2.7mil would be used to defray the estimated expenses in relation to the proposed placement
Eco World said Liew Tian Xiong, an executive director and major shareholder, has given his irrevocable undertaking to subscribe for 118.21 million placement shares.
“He has also indicated his intention to subscribe for up to an additional 118.21 million placement shares, subject to, amongst others, the availability of external financing at the point of implementation of the proposed placement by Eco World,” it said.
Sinarmas Harta Sdn Bhd, a major shareholder of Eco World, indicated its intention to subscribe for up to 212.78 million of the placement shares.
Eco World said folowing the undertaking, it intends to place up to 236.42 million placement shares to Liew and up to 212.78 million placement shares to Sinarmas Harta and 141.85 placement shares to key institutional investor(s) of Eco World and/ or independent third party investor(s) to be identified at a later date.
“The first tranche will comprise up to 449.21 million placement shares to be placed to Liew and Sinarmas Harta,” it said.
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