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Rakyat Post
29-04-2025
- Business
- Rakyat Post
Eco-Shop Unveils IPO Prospectus
Subscribe to our FREE ECO-SHOP MARKETING BERHAD ('Eco-Shop' or the 'Company'), the leading player in Malaysia's dollar store retail sector has officially launched its initial public offering ('IPO') prospectus today, in conjunction with its listing on the Main Market of Bursa Malaysia Securities Berhad, which is set for 23 May 2025. The Joint Bookrunners secured ten (10) investors as cornerstone investors who collectively subscribed for 90.91 million shares or 90.31% of the Institutional Offering (excluding the Bumiputera Offering under the Ministry of Investment, Trade and Industry ('MITI')). These cornerstone investors are AHAM Asset Management Berhad, Albizia Capital Pte Ltd, Areca Capital Sdn Bhd, Eastspring Investments Berhad, Kairous Equity Sdn Bhd, Kenanga Investors Berhad, Kenanga Islamic Investors Berhad, Lion Global Investors Limited, RHB Asset Management Sdn Bhd and RHB Islamic International Asset Management Berhad. Based on the IPO retail price of RM1.21 per share and the enlarged issued share base comprising 5.747 billion shares, Eco-Shop's market capitalisation upon listing is approximately RM7.0 billion and the IPO is expected to raise RM419.87 million through the public issue of 347 million new shares, making it the largest Malaysian IPO to be launched in the past eight months. Eco-Shop has allocated RM56.27 million (13.4%) to accelerate the expansion of its retail footprint nationwide, RM200.00 million (47.6%) to expand its distribution centres, RM10.90 million (2.6%) for investment in information technology hardware and software, RM100.00 million (23.8%) towards the repayment of bank borrowings and RM52.70 million (12.6%) for working capital purposes and to defray the cost of the IPO and listing. Eco-Shop has a long history of 22 years since its founding in 2003 and commands approximately 67.8% of the Malaysian dollar store retail sector by revenue as at 31 December 2024. The Company is also the market leader by store count and geographical footprint, owning and operating 358 stores (including 22 Eco-Plus stores) nationwide as at 31 March 2025. Eco-Shop offers a diverse range of products at compelling value, including house-brand and supplier's products. Its extensive product range is competitively priced at RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia and Langkawi, appealing to a wide range of consumers. For the full financial year ended 31 May 2024 and the six (6) months ended 30 November 2024, Eco-Shop recorded profit after tax of RM177.28 million and RM93.19 million, respectively. According to the Independent Market Report, the Malaysian dollar store retail sector penetration remains relatively low compared to more mature markets such as Japan, Canada, and the United States. In terms of sales value, this sector is expected to grow at a compound annual growth rate ('CAGR') of 14.2% in the next five (5) years from 2024 to 2029, presenting a robust runway for expansion. The IPO provides an opportunity for Eco-Shop to capitalise on these favourable market dynamics and opportunities. The Independent Market Researcher believes Malaysia's dollar store retail sector has the potential to double in size by 2029, driven by population growth and current low market penetration compared to developed economies. Speaking at the prospectus launch ceremony today, Ms. Jessica Ng , Chief Executive Officer and Executive Director of Eco-Shop, said: 'In today's environment where the rising cost of living continues to affect many households, our business model has never been more relevant. Whether it's personal or household items, kitchenware, stationery or snacks, our customers know that they can walk into any Eco-Shop or Eco-Plus store and walk out with value in hand. This unwavering commitment to 'Make Life Easier' has shaped our identity and our success.' 'We see immense growth potential in the value retail space. Supported by shifting consumer preferences for affordability and convenience, Eco-Shop is well-positioned to grow in scale and relevance. This mission is not just business; it is about making a meaningful impact in the lives our customers and the communities we serve. As we venture forward, we remain committed to transparency, sustainability, and community engagement.' Maybank Investment Bank Berhad's Chief Executive Officer, Mr Michael Oh-Lau said 'Maybank Investment Bank is proud to advise and lead-manage Eco-Shop's IPO, which holds the distinction of being the first dollar store retail chain to be listed in ASEAN. Eco-Shop's commitment to affordability supports an inclusive economy that caters to all segments of society, and is also aligned with Maybank's own pursuit to be a positively impactful organisation.' 'With the consumer sector expected to remain resilient owing to the Government's measures to increase disposable incomes as well as a stable Malaysian economy supported by domestic demand and investment upcycle, Eco-Shop is poised to be a top choice for convenience shopping and daily essentials at affordable prices,' Mr. Michael added. Today marks the opening of the IPO comprising the total offering size of 862.146 million shares, where 675.368 million shares will be offered to institutional and selected investors (including Bumiputera investors approved by MITI) at an institutional price to be determined by way of bookbuilding, and 186.778 million shares will be made available to retail investors at a retail price of RM1.21 per share. Maybank Investment Bank Berhad is the Principal Adviser, Joint Global Coordinator, Joint Bookrunner, and Sole Underwriter for the IPO. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch serve as Joint Global Coordinator and Joint Bookrunner, while RHB Investment Bank Berhad also acts as a Joint Bookrunner. IPO Timetable: Issuance of Prospectus / Opening of applications – 29 April 2025 Closing date of retail applications – 7 May 2025 Balloting date – 9 May 2025 Listing date – 23 May 2025 Share your thoughts with us via TRP's . Get more stories like this to your inbox by signing up for our newsletter.
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.
