*It added on Friday it believes any share price weakness following the announcement is a buying opportunity for investors. “Eco World remains our top sector pick as it is the sector’s bell-weather. Potentially stronger sales and earnings in the coming quarters are the key re-rating catalysts,” it said.
"We are not surprised by the proposed private placement given ECWs aggressive landbanking over the last two years and intention to subscribe up to a 30% stake in the upcoming listing of an international business unit. The undertaking by major shareholders removes any overhang. We lower our FY16-18 EPS forecasts by -11% to -20% and RNAV by 9%. Our new RNAV-TP is MYR1.52 based on a 40% discount to RNAV. Maintain BUY."
hewusana : hi team , I just bought this counter , Can someone kind tell me base on info below can let me know whether ecw is a cash rich company : thanks and appreciate guys
Tony make 'EVERYONE can FLY'.....Liew will provide home for u to stay at oversea and give you chance to buy home oversea to bring you family hv a good good holiday. Can you imaging how powerful and great of this two person??
EcoWorld’s private placement to raise up to RM768.4m Maintain “buy” with a lower target price (TP) of RM1.72: Eco World Development Group Bhd (EcoWorld) has proposed to undertake a private placement of 591.1 million shares, representing 25% of the existing shares. The placement will be done in tranches with the first tranche of 449.2 million shares (76% of the total placement) placed to major shareholders of EcoWorld (Liew Tian Xiong and Sinarmas Harta Sdn Bhd). The subsequent tranches for the remaining 141.8 million shares will be determined later. Read More at : http://www.theedgemarkets.com/my/article/ecoworld%E2%80%99s-private-placement-raise-rm7684m
Strong anchor investors for IPOs Guocoland said to be eyeing a big block of shares in EWI listing
PETALING JAYA: Guocoland (Malaysia) Bhd, the property firm controlled by Tan Sri Quek Leng Chan, may emerge as one of the anchor investors in Eco World International Bhd (EWI).
Sources said Guocoland was among major institutional investors eyeing big blocks of shares ahead of EWI’s proposed RM2bil initial public offering (IPO).
Property developer EWI and manufacturers such as Salutica Bhd and LKL International are taking advantage of a revival in the IPO market to sell their shares.
The steady performance of the FTSE Bursa Malaysia KL Composite Index (FBM KLCI), backed by a returning inflow of foreign funds, is also helping to boost sentiment.
Out of the four companies that listed their shares on Bursa Malaysia so far this year. Only Ranhill Holdings Bhd is currently trading below its IPO price.
Nine companies are en route to listing, three on the Main Market and six on the Ace Market of Bursa Malaysia.
A vice-president of corporate finance for an investment bank said that IPOs would be well received, assuming sentiment in the market remained strong.
“EWI shares will likely be oversubscribed due to the strength of the Eco World brand and reputation,” he said.
EWI is the international arm of Eco World Development Group Bhd, with properties in the UK and Australia.
Proceeds from the proposed IPO will be utilised by EWI to provide working capital for the UK and Australia projects.
They would also be used to repay borrowings undertaken to part-finance land and related acquisition costs and project development expenditures.
Its projects in London, and west Sydney has garnered cumulative sales of £712.5mil (RM4bil) as of Jan 31, 2016.
EWI’s proposed offering is set to be the biggest year-to-date. The other offerings are relatively small in size.
Another investment banker said Salutica and LKL International would be oversubscribed as the public float is relatively small.
“Smaller IPOs should be manageable because there is enough liquidity to go around and the share price is cheaper.
“In addition, most IPO buyers are long-term investors who are not concerned about short-term market fluctuations,” he said.
Both companies are to be listed on the Ace Market.
LKL International aims to raise RM22.6mil from its IPO, while Salutica is targeting to raise RM62.4mil. LKL International is planning to use most of the proceeds for the acquisition of new machinery to increase its operating efficiencies.
Meanwhile, RM25mil from Salutica’s listing will be used to expand the company’s production capacity and its high-end Bluetooth product line.
Apart from Ranhill, other companies that went public this year were Bison Consolidated Bhd, Chin Hin Group Bhd and Pecca Group Bhd.
Ya, buy at low now, profit later on after 2 months as the listing of EWI. *Guocoland (Malaysia) Bhd, the property firm controlled by Tan Sri Quek Leng Chan, may emerge as one of the anchor investors in Eco World International Bhd (EWI). * Don't forget, ECW, will hold a 30% stake of EWI.
Ya, next coming QR will be at June, n will not reflect in tis coming QR. Now, all just waiting the listing of EWI only, as then ECW(Malaysia) relate to EWI(International)(the 30% stake hold), only then the price of ECW will shoot up.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
investmentMonster
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Posted by investmentMonster > 2016-04-29 13:32 | Report Abuse
http://www.thestar.com.my/business/business-news/2016/04/29/cimb-shareholders-of-eco-world-confident-in-future-prospects/