KUALA LUMPUR: Shares of Eco-Shop Marketing Bhd (KL:ECOSHOP) opened at RM1.25 on its Main Market debut on Bursa Malaysia, marking a gain of over 10% from its initial public offering (IPO) price of RM1.13. The counter later settled at RM1.21 in early trade, with nearly 50 million shares changing hands.
The upbeat debut follows a revised IPO pricing strategy, where the company trimmed its final offer price by 7% amid tepid retail demand. While the public portion was only marginally subscribed, the institutional tranche was fully taken up — supported by 10 cornerstone investors including AHAM Asset Management, Areca Capital, and Eastspring Investments. These institutions collectively absorbed over 90% of the institutional allocation.
Eco-Shop’s IPO raised RM974 million in total, comprising RM392 million for the company and RM582 million for selling shareholders, including founder and managing director Datuk Seri Lee Kar Whatt and private equity firm Creador — which previously backed Mr DIY Group (M) Bhd.
Founded as a fixed-price retail chain, Eco-Shop operates over 350 stores nationwide, offering more than 10,000 items — primarily priced at RM2.60 — ranging from household goods to daily necessities.
Proceeds from the IPO will be used to expand the company’s distribution and retail footprint, repay borrowings, and enhance IT infrastructure.
Maybank Investment Bank led the deal as principal adviser and sole underwriter, supported by UBS and RHB as joint global coordinators and bookrunners.
The positive listing comes as a relief for Bursa Malaysia following several underwhelming IPO debuts in recent months. Analysts from Nomura and UOB Kay Hian had earlier issued “buy” ratings on Eco-Shop, with target prices ranging from RM1.35 to RM1.45.
