Eco-Shop reduces its IPO price by 6.6%

Eco-Shop Marketing Bhd reduced its IPO price by 6.6% from RM1.21 to RM1.13 per share for both retail and institutional investors, as announced by Maybank Investment Bank Bhd. The retail Bumiputera portion was under-subscribed, while the overall retail offering was slightly oversubscribed at 0.96 times for 114.94 million shares. The institutional offering of 675.37 million shares was fully subscribed, with 10 cornerstone investors committing to 90.91 million shares (90.31% of the institutional offering, excluding the Bumiputera portion). The IPO public issuance remains at 347 million shares, but the lower price reduces expected gross proceeds to RM392.11 million from RM419.87 million, lowering the market capitalization to RM6.49 billion from RM6.95 billion. The RM27.76 million reduction eliminates RM24.7 million for working capital and cuts IT investments by RM2.3 million.

Eco Shop

Business News

Staff Writer

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