PETALING JAYA (April 29): Eco-Shop Marketing Bhd has launched Malaysia’s largest IPO in eight months, aiming to raise RM419.87 million from 347 million new shares on Bursa Malaysia’s Main Market.
The retail portion offers about 187 million new shares at RM1.21 each.
The IPO totals around 862 million shares, including 515 million existing shares for sale. About 675 million existing and new shares will go to institutional and selected investors, including Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), with pricing determined via bookbuilding.
Eco-Shop has secured commitments from ten cornerstone investors, collectively subscribing for 90.91 million shares, representing 90.31% of the institutional offering (excluding the Bumiputera portion under Miti).
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.
“This prospectus embodies our commitment to making quality products accessible to every Malaysian. It represents our promise to put affordability at the forefront while maintaining the standards of innovation our customers expect and deserve,” said Jessica Ng, executive director and CEO of Eco-Shop.
Applications for the retail portion will close on May 7, with the company slated to list on May 23. At the retail IPO price, Eco-Shop would debut with a market capitalisation of RM7 billion.
Ordertaking for the institutional tranche will end on May 8 and the IPO price will be fixed on May 9. The final price will be either the retail price of RM1.21 per share or the institutional price, whichever is lower.
The public issue and offer for sale would be the largest since 99 Speed Mart Retail Holdings Bhd’s (KL:99SMART) RM2.36 billion IPO in August 2024.
Founded in 2003 in Johor, Eco-Shop operates 358 stores nationwide as of March 31, 2025, including 22 Eco-Plus outlets. The chain offers over 10,000 products, comprising both third-party and in-house brands, ranging from daily essentials to household items — most priced at RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia and Langkawi.
Eco-Shop plans to use the IPO proceeds as follows: RM200 million (47.6%) to expand distribution centres, RM100 million (23.8%) to repay bank loans, RM56.27 million (13.4%) to grow its retail network, RM52.70 million (12.6%) for working capital and IPO-related costs, and RM10.90 million (2.6%) for IT investments.
Eco-Shop is majority-owned by founder and managing director Datuk Seri Lee Kar Whatt, who holds an 80.3% direct stake, while Agathis Montana Sdn Bhd (AMSB) — a vehicle managed by Creador IV — holds 10%. Creador is the same private equity firm known for backing Mr DIY Group (M) Bhd (KL:MRDIY).
Post-listing, Lee’s stake will be diluted to 73.1%, while Creador’s holding will be trimmed to 1.9%.
Maybank Investment Bank is acting as principal adviser, joint global coordinator, joint bookrunner and sole underwriter for the IPO. UBS Securities Malaysia Sdn Bhd and UBS AG Singapore Branch are also joint global coordinators and bookrunners, while RHB Investment Bank joins as a joint bookrunner.
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