Latest news with #Eco-ShopMarketing
Business Times
23-05-2025
- Business
- Business Times
Eco-Shop jumps on debut, minting a new Malaysian billionaire
[KUALA LUMPUR] Shares of discount-chain Eco-Shop Marketing gained on their debut on Friday (May 23) as Malaysia's biggest initial public offering of the year created a billionaire. The stock jumped as much as 10.6 per cent in early trading, before paring gains to close 6.2 per cent higher at RM1.20. Eco-Shop, which sells household items at a fixed price of RM2.60 (S$0.79), raised RM974 million in an offering that valued the company at about US$1.5 billion. That's the most since an IPO by 99 Speed Mart Retail Holdings in September. The time could not have been better for Eco-Shop, according to chief executive officer Jessica Ng. 'If you look at the current economic situation, our business model is even more needed. We stretch the ringgit for many, many people,' Ng said in a Bloomberg News interview. Potential income growth for most of the population over the next two years would also ensure 'a big catchment' and room to expand, she added. The US dollar-store operator plans to use proceeds from the share sale to add 70 outlets per year for the next five years, essentially doubling its store count. The debut is a positive sign for Malaysia's market, whose momentum after the 55 IPOs it saw in 2024 was derailed by tariffs. Although Eco-Shop's IPO shares were eventually priced lower, the listing shows there is still traction for low-cost mass consumer brands among investors. Founded by Lee Kar Whatt and his partners in 2003, Eco-Shop has grown to 350 stores across Malaysia. Lee – who will end up with a US$1.15 billion stake post-listing, according to the Bloomberg billionaires Index – still works out of the company's headquarters in Jementah, a small town located in the southern state of Johor. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The company is looking to expand the portfolio of its in-house brands, which make up more than half of sales, to have better control over cost and quality. Ng said the group also has mechanisms in place that allow it to keep the cost of imported products at a minimum. Eco-Shop, which sells everything from snacks to stationery and cleaning products, reported a 45 per cent on-year increase in net profit to RM61.7 million for the three months through February. Revenue jumped 17 per cent to RM736 million. No doubt, competition has intensified in recent years, particularly from established rivals like Mr DIY Group (M) and smaller upstarts run by entrepreneurs from mainland China. But Ng said Eco-Shop can carve out its own niche, given its 68 per cent market share in the country's discount-store sector. Ng, who previously worked at multinationals, said Malaysian brands are generally 'operationally good' and many of them have become 'irreplaceable' due to the scale they have achieved in their respective categories. Resilient domestic demand will continue to help local chains like Eco-Shop thrive, she said. BLOOMBERG
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New Straits Times
23-05-2025
- Business
- New Straits Times
MARKET PULSE AM MAY 23, 2025 [WATCH]
KUALA LUMPUR: News on the latest moves on the stock and crypto markets. Eco-Shop Marketing rose more than 10 per cent on its trading debut on the Main Market from its IPO price of RM1.13 per share. Bursa Malaysia's 30-stock index opened higher today, defying the subdued performance on Wall Street overnight. As analysts anticipate an imminent rebound, the index is expected to hover between 1.520 and 1,530 today. In the cryptocurrency market, Bitcoin rose to RM470,005, while Ethereum climbed to RM11,265 and Solana stood at RM769. That's it for Market Pulse.
Business Times
22-05-2025
- Business
- Business Times
Dollar-store billionaire poised to emerge from Malaysia IPO
[KUALA LUMPUR] A discount chain with signature red storefronts has drawn legions of Malaysians looking for good deals – and made its founder a billionaire. Eco-Shop Marketing, which operates more than 350 dollar stores across Malaysia, is on track to complete its initial public offering (IPO) in Kuala Lumpur on Friday (May 23) – the country's biggest this year. The listing will value the company at about US$1.5 billion, meaning its founder and controlling shareholder, Lee Kar Whatt, will end up with a US$1.15 billion stake, according to the Bloomberg Billionaires Index. Eco-Shop's growth over the last two fiscal years, with revenue increasing more than 50 per cent, reflects the demand for cheap everyday goods at a time of rising inflation, said Zhu Hann Ng, founder and chief executive officer of Tradeview Capital, a fund manager in Kuala Lumpur. 'Fixed-price retailers became a first choice,' Hann said, referring to the RM2.60 (S$0.61) price tag on all products in Eco-Shop stores in peninsular Malaysia. (Products sold in Malaysia's two states on Borneo cost RM2.80.) Lee, who's 51, will remain in charge. He declined to be interviewed. He opened the chain's first store in 2003 with his brother and a pair of other people. He still works out of the company's headquarters in Jementah – a small town that's a three-hour drive southeast of Kuala Lumpur. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Even before Eco-Shop grew into a nationwide chain, Lee was well-known in the Chinese-Malaysian business community for his charitable engagements, Hann said. In 2023, Lee was captured on a rare photo handing a RM1 million check to the Turkish ambassador to Malaysia, meant for the victims of the earthquakes that devastated parts of southern Turkey. Creador, a private equity firm, took a 10 per cent stake in the company in 2019, at which point it had more than 100 stores. But Eco-Shop faces competition from established rivals, such as Mr DIY Group (M), as well as smaller upstarts run by entrepreneurs from mainland China, Hann said. 'We feel the market in Malaysia is quite saturated' and the company's 'upside is capped', he said. Tradeview declined to buy Eco-Shop shares as part of the offering. For its part, Eco-Shop says in its prospectus that there's significant room to grow. It plans to open approximately 70 new stores annually for the next five years. BLOOMBERG
Straits Times
22-05-2025
- Business
- Straits Times
New Malaysian billionaire set to emerge from dollar store chain Eco-Shop's IPO
Eco-Shop Marketing is on track to complete its initial public offering in Kuala Lumpur on May 23 – the country's biggest in 2025. PHOTO: KUALA LUMPUR - A discount chain with signature red storefronts has drawn legions of Malaysians looking for good deals – and made its founder a billionaire. Eco-Shop Marketing, which operates more than 350 dollar stores across Malaysia, is on track to complete its initial public offering in Kuala Lumpur on May 23 – the country's biggest in 2025. The listing will value the company at about US$1.5 billion (S$1.9 billion), meaning its founder and controlling shareholder, Lee Kar Whatt, will end up with a US$1.15 billion stake, according to the Bloomberg Billionaires Index. Eco-Shop's growth over the last two fiscal years, with revenue increasing more than 50 per cent, reflects the demand for cheap everyday goods at a time of rising inflation, said Ng Zhu Hann, founder and chief executive officer of Tradeview Capital, a fund manager in Kuala Lumpur. 'Fixed-price retailers became a first choice,' Mr Ng, referring to the RM2.60 price tag on all products in Eco-Shop stores in peninsular Malaysia. Mr Lee, who's 51, will remain in charge. He declined to be interviewed. He opened the chain's first store in 2003 with his brother and a pair of other people. He still works out of the company's headquarters in Jementah – a small town that's a three-hour drive south-east of Kuala Lumpur. Even before Eco-Shop grew into a nationwide chain, Mr Lee was well-known in the Malaysian Chinese business community for his charitable engagements, Mr Ng said. In 2023, Mr Lee was captured on a rare photo handing a RM1 million cheque to the Turkish ambassador to Malaysia, meant for the victims of the earthquakes that devastated parts of southern Turkey. Creador Sdn., a private equity firm, took a 10 per cent stake in the company in 2019, at which point it had more than 100 stores. But Eco-Shop faces competition from established rivals, like Mr DIY Group, as well as smaller upstarts run by entrepreneurs from mainland China, Mr Ng said. 'We feel the market in Malaysia is quite saturated' and the company's 'upside is capped,' he said. Tradeview declined to buy Eco-Shop shares as part of the offering. For its part, Eco-Shop says in its prospectus that there's significant room to grow. It plans to open approximately 70 new stores annually for the next five years. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
30-04-2025
- Business
- Yahoo
Malaysia's Eco-Shop Marketing launches initial public offering of up to $241 million
SINGAPORE, April 30 (Reuters) - Malaysian affordable household retailer Eco-Shop Marketing has launched a domestic initial public offering (IPO) of up to 1.04 billion ringgit ($241.30 million), according to its IPO prospectus filed on Tuesday. The offering will comprise 347 million new shares and 515 million existing shares, with managing director Lee Kar Whatt and private equity firm Creador's unit Agathis Montana - both substantial shareholders - selling down their stake, the prospectus showed. Post the IPO, Lee's direct stake will drop to 73.9% from 80.3%, while Montana's stake will drop to 1.9% from 10%. The IPO's retail price of 1.21 ringgit per share is expected to raise about 419.87 million ringgit ($97.42 million) from the newly issued shares. This will be used to open new stores, expand the company's distribution centre and repay bank borrowings, among others, according to the prospectus. The listing date falls on May 23. Cornerstone investors include AHAM Asset Management Bhd, Areca Capital Sdn Bhd, Eastspring Investments Bhd, Kenanga Investors Bhd and RHB Asset Management Sdn Bhd, among others, the prospectus showed.
