The stock market has been quite positive recently. Have you bought any shares yet? Another huge public offering one is coming up. This one is attracting huge attention. I always believe public listed companies which attract ‘famous’ investors would have advantage over those without. The reason is simple, confidence. The news about Eco World International’s (EWI) IPO was reported in a few medias. Here’s one of them. thesundaily It’s aiming for an Initial Public Offering (IPO) and has secured the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) as its cornerstone investors. In total both of them would be subscribing over 30 percent of the total institutional offering or 6 percent of the enlarged paid-up capital postlisting. It will also have Guocoland taking up a strategic stake of 27 percent in EWI as well.
Their joint global coordinators are CIMB Investment Bank Bhd (CIMB IB) and Maybank Investment Bank Bhd (Maybank IB). It will be offering the remaining institutional offerings to regional investors from Malaysia, Singapore and Hong Kong. The issuance of EWI’s prospectus in respect of the IPO is expected in March and the listing of EWI is on track for early April. It’s president and CEO Datuk Teow Leong Seng also shared that it may even start paying dividend to shareholders when it begins recognising sales from its projects in the UK and Australia fromthe financial year ending Oct 31, 2019. On EWI’s current projects, it has sold RM6.3 billion out of a total gross development value of RM12.9 billion. This is for its four projects in London and Sydney. Current take up rate is 64 percent and it expects to hit 100 percent sales for all four projects within a year. It will continue to acquire land but will only sign on more projects after the listing. The focus for EWI remains in the UK and Australia for now as this is the segment it is still active in.
It’s important to read through what we intend to buy. Perhaps it’s time to start reading about the UK and Australia’s property market? Specifically, these are their three projects in London. They include Embassy Gardens in Nine Elms, London City Island in Leamouth Peninsula and Wardian London in Canary Wharf. Their sole project in Sydney is called West Village in Parramatta. Some latest news about the Sydney property market? Australia property bubble? 27 experts said, It’s ok. 1 said, “it will burst.” Alternatively, we can also choose to believe the reasons for EPF, PNB and Guocoland in taking up stakes in EWI. Last but not least, buy only if we are ready to hold for a long time. Property stocks tend to need more time because developments could not be completed overnight. Happy waiting and investing.
written on 21 Feb 2017
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