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New Straits Times
22-05-2025
- Business
- New Straits Times
Aberdeen continues buying spree in Velesto, lifts stake to over 6pct
KUALA LUMPUR: Aberdeen Group plc has continued accumulating shares in oil and gas services provider Velesto Energy Bhd, lifting its stake past six per cent within a span of two weeks. The United Kingdom-based investment firm, which emerged as a substantial shareholder in Velesto earlier this month, acquired an additional 24.98 million shares on May 20. This raised its deemed interest in Velesto to 509 million shares, or 6.20 per cent of the company. Aberdeen had first surfaced as a substantial shareholder on May 7 after acquiring 429.39 million shares, representing a 5.23 per cent stake. In multiple bourse filings, Velesto said the shares were acquired via Citibank Bhd, which acted as custodian for "one or more funds" managed by subsidiaries of Aberdeen. The identities of the ultimate beneficiaries remain undisclosed. Velesto, a key player in the upstream oil and gas sector, owns and operates six jack-up drilling rigs and offers hydraulic workover services through its integrated operations. It also provides tubular goods inspection and threading services under its oilfield services arm. Velesto's share price has declined 43.1 per cent over the past 12 months but has seen a modest year-to-date rebound, rising from 15.5 sen on January 2 to 16.5 sen currently. For the financial year ended Dec 31, 2024, Velesto more than doubled its net profit to RM207.71 million, up from RM99.53 million a year earlier. Revenue also climbed 12.1 per cent to RM1.36 billion from RM1.21 billion. The company reported a net margin of 15.3 per cent and return on equity of 8.2 per cent, according to Bursa Marketplace. Its current dividend yield stands at 7.6 per cent, among the highest in its sector. At least eight analysts currently cover the stock, with a consensus 'Buy' rating and a 12-month average target price of 21 sen. The company boasts strong fundamentals, including a low debt-to-capital ratio of 0.1 per cent and a dividend payout ratio below 50 per cent. In March, Aberdeen emerged as a substantial shareholder in Eastern & Oriental Bhd with a 5.05 per cent stake, later increasing its holdings to 5.81 per cent. Two years earlier, it took a 5.24 per cent stake in CTOS Digital Bhd, which has since grown to 14.99 per cent. Headquartered in Edinburgh, Aberdeen Group plc, formerly abrdn plc, manages over £500 billion in global assets and is listed on the London Stock Exchange. Its investment strategy is typically long-term and fundamental-based, often involving large mandates from institutional clients such as pension funds, insurers and sovereign funds.
The Star
09-05-2025
- Business
- The Star
Eco-Shop launches the year's biggest IPO to date
PETALING JAYA: Main Market-bound Eco-Shop Marketing Bhd aims to raise RM419.87mil via an initial public offering (IPO), which comprises 347 million new shares at a retail price of RM1.21 apiece. Slated to debut on the Main Market of Bursa Malaysia on May 23, 2025, Eco-Shop is estimated to have a market capitalisation of RM7bil upon listing, making it Malaysia's biggest IPO for this year as of now. Operating as a dollar chain store, Eco-Shop currently has about 350 stores nationwide and is planning to expand by opening up another 70 stores within one year after listing. Executive director and chief executive officer Jessica Ng said there are ample opportunities and space to increase the number of outlets in Malaysia. Despite not disclosing the specific locations for the planned outlets, she said the majority will be in underserved areas in the Klang Valley and states on the east coast. 'In the last 12 months, we focused a lot on Johor to maximise operational efficiency. 'But this year, we would like to open more stores in the Klang Valley. 'So, we hope we can make our presence more visible in the sector,' she explained during a press conference after the launch of Eco-Shop's prospectus here yesterday. That being said, the group has allocated about 13.4% of the proceeds or RM56.27mil for the expansion of new chain stores. When asked about the duration to reach breakeven per store, Ng said it would usually take about one year for each store to be profitable. She stated that the group is looking to enhance its warehouse and distribution capabilities by developing a new semi-automated distribution centre in Klang, Selangor. Eco-Shop will be acquiring a 307,560 sq- m-freehold medium industrial land for the construction of the distribution centre, with the deal to be financed via IPO proceeds amounting to RM200mil. 'This is in line with the growth in the number of our outlets,' Ng said. An allocation of RM10.9mil or 2.6% of the proceeds has been put aside as the group also plans to invest in IT hardware and software to further enhance and support daily operations. The remainder of the proceeds will be used to finance the repayment of bank borrowings, working capital and listing expenses at RM100mil, RM24.7mil and RM28mil, respectively. On that note, Ng stated that the group remains confident in its future prospects despite the current uncertainties within the global economic landscape. 'The consumer sentiment is definitely shifting and people are more budget-conscious as well. So, Eco-Shop is a brand that really fits into this good value proposition,' she said. On the trade war between the United States and China, she views it to be more advantageous for the group considering the opportunities presented from China's exports. About half of its products are imported and the remaining half are supplied locally. Additionally, Ng shared that the group will be expanding its house brands by improving product display and revamping packaging and products as well as product innovation. 'Our house brand represents 70% of our stock keeping units and reflects close to 56% of our sales participation. 'Hence, our house brand plays a very critical role,' she explained, adding that house brands bring in higher margins. Eco-Shop has 29 house brands as of today. On top of its public offering, Eco-Shop will offer 675.37 million shares to institutional investors at a price to be determined through a book-building process – of which 10 investors were identified as cornerstone investors who collectively subscribed for 90.91 million shares or 90.31% of the institutional offering. The cornerstone investors include Aham Asset Management, Albizia Capital Pte Ltd, Areca Capital Sdn Bhd, Eastspring Investments Bhd, Kairous Equity Sdn Bhd, Kenanga Investors Bhd, Kenanga Islamic Investors Bhd, Lion Global Investors Ltd, RHB Asset Management Sdn Bhd and RHB Islamic International Asset Management Bhd. An offer for sale of up to 515.15 million existing shares was also made available. Applications for the IPO are now open and will close on May 7, 2025 at 5pm.
Barnama
29-04-2025
- Business
- Barnama
Manufacturing Sector Powers Kelantan's Economic Progress As ECERDC Spurs RM1.21 Bln In Investments
GENERAL KUALA LUMPUR, April 29 (Bernama) -- Kelantan's transformation into an emerging industrial hub continues to gain momentum as the East Coast Economic Region Development Council (ECERDC) secures RM1.21 billion in realised investments, driven primarily by the manufacturing sector. Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud said the progress surpassed the annual investment target, reflecting the strong commitment of the state government with the federal government through ECERDC. "The RM1.21 billion in realised investments, driven largely by the renewable energy sector, signals Kelantan's readiness for high-impact development. "With an additional RM290 million in committed investments projected to create over 650 new jobs, investor confidence in Kelantan's long-term potential continues to grow," he said after chairing the East Coast Economic Region (ECER) Implementation and Coordination Committee Kelantan meeting in Kota Bahru today. In a statement, ECERDC said the achievement reaffirms Kelantan's growing appeal as a competitive investment destination within the ECER. ECERDC said key contributors to this milestone include the 84 megawatt (MW) mini hydro power plant project in Kuala Krai, which has begun groundwork, and the development of an automotive 3S (sales, service and spare parts) centre at the Halal Park in Pasir Mas, which is expected to commence operations in the fourth quarter of 2025. According to the statement, major progress has been recorded in the construction of the Palekbang–Kota Bharu Bridge. It also noted that the works on the cable-stayed section across Sungai Kelantan began in April 2025, and the overall project remains on track for completion. Meanwhile, ECERDC has formalised a collaboration agreement with Perbadanan Kemajuan Pertanian Negeri Kelantan and Pertubuhan Peladang Kawasan Bukit Awang today.
Business Times
29-04-2025
- Business
- Business Times
Discount chain Eco-Shop seeks RM419 million in Malaysia IPO
[KUALA LUMPUR] Malaysian discount retail chain Eco-Shop Marketing plans to raise RM419 million (S$127 million) in what will be Malaysia's biggest market debut in eight months. Eco-Shop will look to sell 347 million shares at RM1.21 apiece in a public listing, valuing the company at RM7 billion, according to a prospectus released on Tuesday (Apr 29). The company plans to raise an additional RM623 million via a share sale to institutional investors. Maybank Investment Bank, a unit of Malaysia's biggest lender, is the sole underwriter of the IPO. The stock is expected to start trading on May 23. The dollar-store operator plans to use the proceeds from the share sale to add 70 stores per year for the next five years, essentially doubling its store count, chief executive officer Jessica Ng said during the launch of the prospectus in Malaysia's Selangor state. 'In the current cost environment, our business model has never been more relevant,' she said. Established in 2003 by Lee Kar Whatt, Eco-Shop sells the majority of items in its stores for RM2.60. It operates 350 stores across Malaysia and has a market share of 68 per cent in the country's discount-store sector. Eco-Shop's IPO underlines the strength of Malaysia's consumer sector – which also attracted the country's biggest listing last year in mini-mart chain 99 Speed Mart Retail Holdings, which raised over US$530 million in Malaysia's biggest IPO in seven years. Malaysia's consumer spending is expected to see further strong growth in 2025, according to Fitch Solutions' BMI in a recent report. Household spending is expected to grow 5.2 per cent this year, according to the report, marking a return to pre-pandemic levels of growth. BLOOMBERG
New Straits Times
29-04-2025
- Business
- New Straits Times
Eco-Shop confident ahead of main market debut with RM420mil IPO
PETALING JAYA: Eco-Shop Marketing Bhd, which is en route to a listing on the Main Market of Bursa Malaysia Securities Bhd, remains confident in its prospects as underpinned by strong fundamentals despite uncertainties in market sentiment and the economy. Eco-Shop said its initial public offering (IPO) is set to be the largest IPO to be launched in the past eight months, with an estimated RM419.87 million to be raised through the public issuance of 347 million new shares, based on the IPO retail price of RM1.21 per share. The company will also offer 675.37 million shares to institutional investors at a price to be determined through a book-building process, it said in a statement. The IPO has secured ten investors acting as cornerstone investors, who collectively subscribed for 90.91 million shares or 90.31 per cent of the institutional offering, the firm said. Its chief executive officer and executive director Jessica Ng said that global market uncertainties have undoubtedly impacted both investor and consumer sentiment. However, she said Eco-Shop remains optimistic that its value proposition is timely and well-suited to the current environment. "Market forces are definitely one of the factors that we take into consideration (for listing). "However, in this tough situation (with market uncertainties), a business model like ours is even more needed. (Looking at the US tariffs) and the rising cost, we are very ultra-affordable," she told reporters during the press conference today, in conjunction with the launch of the IPO prospectus. She said Eco-Shop has consistently proven its business strength over the years, with strong sourcing capabilities and a competitive edge in bulk purchasing. "We also have solid operations and infrastructure, and the ability to buy in volume and repackage products into smaller sizes," she added. Eco-Shop's listing on the Main Market is set for May 23, 2025. In response to a question about the product price hike, Ng explained that the rise from RM2.40 to RM2.60 (starting April 14) was due to the increase in the minimum wage, but she emphasised that most of its workers fall within the B40 income group. "The majority of EcoShop employees are under the B40 group. So, we will have to make this adjustment to help our employees as well. "While the basic pay is RM1,700, Eco-Shop pays a basic wage of RM1,800. So, the decision was made as we have to balance between taking care of the stakeholders in the right way," she said. Meanwhile, commenting on the IPO proceeds utilisation, Ng said Eco-Shop has allocated RM56.27 million (13.4 per cent) to accelerate the expansion of its retail footprint nationwide and RM200 million (47.6 per cent) to expand its distribution centres. She added that RM10.90 million (2.6 per cent) is earmarked for investment in information technology hardware and software, RM100 million (23.8 per cent) towards repaying bank borrowings, and RM52.70 million (12.6 per cent) for working capital purposes and defraying the costs of the IPO and listing. "We are targeting 70 stores per year for the next five years, and currently, the under-penetrated market will be the Klang Valley as well as East Malaysia.
