KUALA LUMPUR (April 28): Eco World Development Group Bhd (EcoWorld) is proposing a private share placement to raise as much as RM768.39 million for EcoWorld International Bhd's initial public offering (IPO).

In a filing with Bursa Malaysia today, the property developer said it wants to place out some 591.07 million new shares, which is equivalent to 25% of its existing paid-up capital, to raise as much as RM768.39 million, based on an indicative issue price of RM1.30 apiece.

EcoWorld said a total of RM468 million or 60.9% of the fresh capital raised will be set aside for the share acquisition at EcoWorld International's IPO.

Its executive director and major shareholder Liew Tian Xiong has expressed his intention to subscribe up to 118.21 million or 40% of the new shares, subject to the availability of external financing at the point of implementation of the placement, according to the announcement.

Meanwhile, its major shareholder Sinarmas Harta Sdn Bhd also intends to subscribe to 212.78 million or 36% of the new share placement.

The remaining 141.86 million or 24% will be placed to key institutional investor(s) or independent third party investor(s) to be identified at a later stage.

In the event that the 24% shares are not fully taken up by third party investors, EcoWorld said Liew has expressed his interest in subscribing for an additional 118.21 million shares.

EcoWorld said the placement will be implemented in tranches. The board, excluding interested directors, has fixed the issue price for the first tranche of the placement shares, amounting to 449.21 million shares at RM1.30 apiece, representing a 0.76% discount to its five-day volume weighted average market price up to April 21.