logo
Dollar store to boost Malaysian IPOs with year's biggest listing

Dollar store to boost Malaysian IPOs with year's biggest listing

Eco-Shop sells household items at a fixed price of RM2.60. (Eco-Shop pic)
KUALA LUMPUR : Discount-chain Eco-Shop Marketing Bhd debuts in Malaysia today in a listing that's set to create a billionaire after the nation's biggest initial public offering of the year.
Eco-Shop, which sells household items at a fixed price of RM2.60, raised RM974 million (US$228 million) in an offering that valued the company at about US$1.5 billion.
That's the most since an IPO by 99 Speed Mart Retail Holdings Bhd in September.
Eco-Shop shares jumped as much as 10.6% in early trading.
The time couldn't have been better for Eco-Shop, according to chief executive officer Jessica Ng.
'If you look at the current economic situation, our business model is even more needed. We stretch the ringgit for many, many people,' Ng told Bloomberg in an interview.
Potential income growth for most of the population over the next two years would also ensure 'a big catchment' and room to expand, she added.
The dollar-store operator plans to use proceeds from the share sale to add 70 outlets per year for the next five years, essentially doubling its store count.
The debut is a positive sign for Malaysia's market, whose momentum after the 55 IPOs it saw in 2024 was derailed by tariffs.
Although Eco-Shop's IPO shares were eventually priced lower, the listing shows there's still traction for low-cost mass consumer brands among investors.
Founded by Lee Kar Whatt and his partners in 2003, Eco-Shop has grown to 350 stores across Malaysia.
Lee – who will end up with a US$1.15 billion stake post-listing, according to the Bloomberg Billionaires Index – still works out of the company's headquarters in Jementah, a small town located in the southern state of Johor.
The company is looking to expand the portfolio of its in-house brands, which make up more than half of sales, to have better control over cost and quality.
Ng said the group also has mechanisms in place that allow it to keep the cost of imported products at a minimum.
Eco-Shop, which sells everything from snacks to stationery and cleaning products, reported a 45% on-year increase in net profit to RM61.7 million for the three months through February.
Revenue jumped 17% to RM736 million.
No doubt, competition has intensified in recent years, particularly from established rivals, like Mr DIY Group Bhd, as well as smaller upstarts run by entrepreneurs from mainland China.
But Ng said Eco-Shop can carve out its own niche, given its 68% market share in the country's discount-store sector.
Ng, who previously worked at multinationals, said Malaysian brands are generally 'operationally good' and many of them have become 'irreplaceable' due to the scale they have achieved in their respective categories.
Resilient domestic demand will continue to help local chains like Eco-Shop thrive, she said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

No prospecting licence issued to Farhash-linked firm, says Sabah land dept
No prospecting licence issued to Farhash-linked firm, says Sabah land dept

Free Malaysia Today

time4 hours ago

  • Free Malaysia Today

No prospecting licence issued to Farhash-linked firm, says Sabah land dept

Sabah lands and surveys department director Bernard Liew said allegations claiming that Bumi Suria Sdn Bhd had been awarded a mineral prospecting licence in Sabah are baseless. PETALING JAYA : The Sabah lands and surveys department maintains that no mineral prospecting licence had been issued to Bumi Suria Sdn Bhd, the company linked to businessman Farhash Wafa Salvador Rizal Mubarak. The department's director, Bernard Liew, said no prospecting licence was awarded to the company under the Sabah Mining Ordinance 1960 and that allegations claiming otherwise were baseless. He added that the department was the authoritative body governing mining in the Bornean state. 'Any mineral exploration activity in Sabah can only be conducted after obtaining a legitimate licence issued under Sections 6 and 8 of the Sabah Mining Ordinance. 'And this is subject to technical conditions and other relevant laws that are already in place. The department views seriously any statement made via the media that can mislead the public,' he said in a statement. MalaysiaNow previously reported that Sabah Mineral Management Sdn Bhd (SMM) had awarded Bumi Suria an exploration licence for coal mining. The report said it had been granted exclusive rights to explore and search for minerals on 70,000ha of forest reserve in Kalabakan and Gunung Rara near the Kalimantan border. In a statement to FMT, SMM CEO Natasha Sim said the state government agency was not a licence-awarding body, nor did it have jurisdiction to award or issue licences. On Monday, Farhash said his lawyers had served MalaysiaNow with a cease and desist letter, saying allegations that he owned Bumi Suria and that the company had been awarded a mineral prospecting or exploration licence in Sabah were false and defamatory. The lawyers said Farhash was merely a director and shareholder of Bumi Suria, and demanded that the article be removed from the website and all social media channels.

Kg Sungai Baru redevelopment starts next year, says FT minister
Kg Sungai Baru redevelopment starts next year, says FT minister

Free Malaysia Today

time5 hours ago

  • Free Malaysia Today

Kg Sungai Baru redevelopment starts next year, says FT minister

Kampung Sungai Baru's redevelopment was first initiated in 2016, but has been stalled largely due to legal issues, compensation disputes and disagreements among its residents. PETALING JAYA : The long-delayed redevelopment of Kampung Sungai Baru is now expected to begin in the first quarter of 2026, says federal territories minister Dr Zaliha Mustafa. In a written parliamentary reply, she said the project's layout and building plans have been approved, and the developer is currently securing other technical clearances from Kuala Lumpur City Hall (DBKL) and relevant agencies. 'The project is expected to be launched soon, with construction set to begin in the first quarter of 2026,' she said in response to Azman Nasrudin (PN-Padang Serai), who asked for details about the redevelopment. The new timeline marks a delay from a commitment made by Zaliha in 2024, when she told Parliament that construction would begin in the first quarter of 2025. Kampung Sungai Baru's redevelopment was first initiated in 2016, but has been stalled largely due to legal issues, compensation disputes and disagreements among its residents. Zaliha also said that the land acquisition application under the Land Acquisition Act 1960 was submitted by the developer in October 2020 and subsequently approved by the federal territories land working committee. Gazettement of the acquisition, involving 110 properties, including 37 terrace lots, 72 flats, and a Tenaga Nasional Berhad substation, was carried out in June 2021 under Sections 4 and 8 of the Act, for residential and commercial use.

Sejahtera Madani initiative launched, nearly RM120m raised to end poverty
Sejahtera Madani initiative launched, nearly RM120m raised to end poverty

Daily Express

time7 hours ago

  • Daily Express

Sejahtera Madani initiative launched, nearly RM120m raised to end poverty

Published on: Thursday, July 24, 2025 Published on: Thu, Jul 24, 2025 By: Bernama Text Size: Pic by Bernama PUTRAJAYA: The Malaysia Madani People's Wellbeing Initiative (Sejahtera Madani), launched today to end poverty, has successfully raised nearly RM120 million, Prime Minister Datuk Seri Anwar Ibrahim ( pic ) announced. Speaking at the launch, Anwar, who is also Finance Minister, said the initiative had received overwhelming support from the private sector, surpassing its initial fundraising target of RM50 million. 'I said if Sejahtera Madani could raise RM50 million, that would already be a success, and the government could top it up a bit, but today the response has not just doubled, it's gone far beyond that. 'The initiative has now raised nearly RM120 million. This is a meaningful project, and we want to drive this nation to become strong and great,' he said. Present at the event were Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Minister of Housing and Local Government Nga Kor Ming, Minister of Women, Family and Community Development Datuk Seri Nancy Shukri and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar. Anwar also reiterated his Madani Government's commitment to ending hardcore poverty in Malaysia through coordinated efforts and strategic approaches. 'My target, together with the Cabinet, is to end hardcore poverty. Based on data from 2023 to 2024, we've made significant progress. Even though new cases may emerge, the overall numbers are far lower than before,' he said. The Prime Minister also praised the commitment of all stakeholders, particularly the private sector and Islamic religious councils, for working alongside the government to tackle one of the country's most persistent issues. Sejahtera Madani is a national initiative aimed at assisting poor and hardcore poor households registered under the National Poverty Database or the eKasih system. Coordinated by the Implementation Coordination Unit of the Prime Minister's Department (ICU JPM), the initiative consolidates various aid interventions across ministries, agencies, and private entities for a focused and integrated poverty eradication strategy. In a statement issued at the launch, ICU JPM described Sejahtera Madani as being anchored on a "whole-of-nation approach," enhanced with high-impact and sustainable programs targeting both heads of households and household members under the eKasih system. The initiative focuses on four key areas, namely income generation, education, housing, and social welfare. The government is targeting RM100 million in corporate social responsibility (CSR) contributions for Sejahtera Madani, all of which will be channelled to the People's Wellbeing Fund managed by ICU JPM. 'All CSR contributions under this initiative qualify for income tax deductions under Subsection 44(6) of the Income Tax Act 1967,' the statement read. As of July 15, a total of 306,403 heads of households are registered in the eKasih database nationwide, comprising 1,017 classified as hardcore poor and 305,386 as poor. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store