By REUTERS
Malaysian property developer Eco World Development Group Bhd plans to raise as much as RM1.9 billion through a special purpose acquisition company (SPAC) for expansion into new markets.
The SPAC, to be named Eco World International Bhd, would start with no existing assets but go on to take new projects or redevelopments in markets such as Australia and the United Kingdom, Eco World said in a statement to the stock exchange on Thursday.
Eco World will own 30% of the unit’s issued and paid up capital for RM562.5 million.
This would be Malaysia’s first property SPAC and follow the oil and gas IPOs by Reach Energy Bhd, Sona Petroleum Bhd and Cliq Energy Bhd.
SPACs attract investors with a team of experienced industry executives who seek to translate seed money into profits down the road.
Eco World International will be led by Teow Leong Seng and Liew Kee Sin, who were previously the head and chief financial officer of Malaysia’s largest property developer, SP Setia Bhd, respectively.
Malaysia late last year tightened rules on SPACs to assure investors their money will be secure in the months or years that such shell companies might take to find an income-generating asset.
— by Al-Zaquan Amer Hamzah
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