Ekovest’s listing and EPF’s stake means I am in too.

Yes I am writing below as I will be having a stake. Indirectly maybe but still a stake. No idea if I may buy some units when it’s listed in Bursa come 2018 but my Employees Provident Fund (EPF) already has a 40 percent stake in it. Need to read the full article? Here. Else, below would be the brief. Ekovest Bhd will be listing its infrastructure asset to raise at least S$500 million (RM2.1 billion). It would bean IPO for its highway concession business. If it’s listed, the proceeds would be used to reward its existing shareholders and expansion of the company. Do you like an expressway type of stocks?

The highway that we are talking about is called Konsortium Lebuhraya Utara-Timur (KL), or Kesturi in short. It holds the concession to maintain the 18-kilometer Duta-Ulu Kelang Expressway (Duke) and its coming 16-kilometre extension. Yes, I use DUKE at least once a week these days.  More expressways would mean more connection choices and buying a stake meant that EPF would have a stable recurring income. These days, it’s getting harder to buy assets providing stable incomes. Another plus point is the fact that Greater KL is welcoming ever more new working professionals and these expressways provide access from the suburbs to the KL city centre.

Within the first-half of 2016, the IPO volume in Malaysia was just $210 million. This is less than 26 percent when compared to last year’s $253 million, according to Dealogic data. Any new over a billion ringgit listing is definitely a good news for the market. These days, the appetite for stocks are down, just like the demand for properties which is showing in the transaction numbers. Growth is still projected to be between 4 to 5 percent by the government. No one is predicting a recession yet but the negative sentiment has actually increased because of the U.S. election which Mr.Donald Trump won. Happy following.

written on 9 Nov 2016

Next suggested article: KWAP willing to accept 4 percent returns from property investments

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