Latest news with #JessicaNg
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Eco-Shop Weighs Expansion Even With Wary Eye on Tariffs
KUALA LUMPUR, Malaysia—Eco-Shop pulled off Malaysia's biggest IPO of the year. Now, the $1.7 billion company is looking to expand its dollar-store empire beyond its home market despite a tough trade environment, its chief executive said. Any cross-border move will be 'thoughtful and disciplined,' CEO Jessica Ng said in an interview.
New Straits Times
23-05-2025
- Business
- New Straits Times
Eco-Shop positive about performance despite price hike
KUALA LUMPUR: Household retailer Eco-Shop Marketing Bhd remains optimistic about its performance despite hiking up product prices to RM2.60 from RM2.40 last month. Its chief financial officer Chong Yew Kai said the company raised prices to RM2.40 from RM2.20 in 2022 and saw no negative market reaction. "I see no changes in company performance (after the price increase), it was as per our expectation. So, we are not seeing any different kind of market reaction. "Of course, (we are in) a transition period (now). Moving forward, we are looking at a very strong performance," he told a press conference after today's listing. Recently, Eco-Shop posted a higher net profit of RM61.72 million for the third quarter of its financial year ending Feb 28, 2025 (3Q FY2025), compared to RM42.57 million in the same period a year ago. The revenue increased 17.2 per cent to RM736.35 million in 3Q FY2025 from RM628.41 million previously, driven by the expansion of the group's store network with the opening of 26 new outlets, bringing the total number of stores to 349 in 3Q FY2025 from 278 in 3Q FY2024. Meanwhile, Eco-Shop chief executive officer and executive director Jessica Ng said the company would evaluate their opportunities to venture into the ASEAN market in the future, as the dollar shop segment in the region is still new. Dollar shops offer a wide range of products at fixed, low prices and typically carry daily items like household goods, snacks, and personal care products, and may also include items like stationery and hardware. However, she said the group would likely focus their business expansion in Malaysia for now, so that more Malaysians would have access to affordable products. As of today, Eco-Shop has 358 stores in Malaysia, comprising 336 Eco-Shop stores and 22 Eco-Plus stores. Today, Eco-Shop debuted on the Main Market of Bursa Malaysia at RM1.25, a premium of 12 sen from its initial public offering (IPO) price of RM1.13, with 25 million shares traded. Under its listing exercise, the company had raised RM419.87 million, where RM200 million or 51 per cent would be utilised for distribution centre expansion, RM56.27 million (14.4 per cent) for new store opening, and RM8.52 million (2.2 per cent) for IT hardware and software. "RM100 million or 25.5 per cent would be utilised to repay bank borrowings, and RM27.32 million (7.0 per cent) for IPO and listing expenses," it said. At 5 pm, Eco-Shop closed the day trading at RM1.20, seven sen higher than its issue price of RM1.13, with the company also emerging as the most active stock for the day with 209.16 million shares changing hands.
Business Times
23-05-2025
- Business
- Business Times
Eco-Shop jumps on debut, minting a new Malaysian billionaire
[KUALA LUMPUR] Shares of discount-chain Eco-Shop Marketing gained on their debut on Friday (May 23) as Malaysia's biggest initial public offering of the year created a billionaire. The stock jumped as much as 10.6 per cent in early trading, before paring gains to close 6.2 per cent higher at RM1.20. Eco-Shop, which sells household items at a fixed price of RM2.60 (S$0.79), raised RM974 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 in September. The time could not 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 said in a Bloomberg News 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 US 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 is 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. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 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 per cent on-year increase in net profit to RM61.7 million for the three months through February. Revenue jumped 17 per cent to RM736 million. No doubt, competition has intensified in recent years, particularly from established rivals like Mr DIY Group (M) and smaller upstarts run by entrepreneurs from mainland China. But Ng said Eco-Shop can carve out its own niche, given its 68 per cent 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. BLOOMBERG
Yahoo
23-05-2025
- Business
- Yahoo
Dollar store jumps on debut, minting a new Malaysian billionaire
By Ram Anand (Bloomberg) – Shares of discount-chain Eco-Shop Marketing gained on their debut on Friday as Malaysia's biggest initial public offering of the year created a billionaire. The stock jumped as much as 10.6% in early trading, before paring its advance. Eco-Shop, which sells household items at a fixed price of 2.60 ringgit ($0.60), raised 974 million ringgit in an offering that valued the company at about $1.5 billion. That's the most since an IPO by 99 Speed Mart Retail in September. 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 said in a Bloomberg News 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 $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 61.7 million ringgit for the three months through February. Revenue jumped 17% to 736 million ringgit. No doubt, competition has intensified in recent years, particularly from established rivals like Mr DIY Group and 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. More stories like this are available on ©2025 Bloomberg L.P.
Free Malaysia Today
23-05-2025
- Business
- Free Malaysia Today
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.
