Eco-Shop Marketing Sdn., a budget retail chain in Malaysia, is weighing an initial public offering in Kuala Lumpur that could raise as much as 800 million ringgit ($179 million), according to the people with knowledge of the matter.
The company, which is backed by private equity firm Creador Capital Group, is working with financial advisers on the planned first-time share sale, said the people, asking not to be identified as the process is private. A listing could take place as early as September, the people said.
Deliberations are ongoing and details such as size and timing of the IPO could still change, the people said. Representatives for Creador and Eco-Shop didn’t immediately respond to requests for comment.
Should the IPO materialize, it would be the third first-time share sale by a Creador portfolio company since 2020 when the buyout firm listed home improvement chain Mr DIY Group (M) Bhd. in Kuala Lumpur. Credit bureau CTOS Digital Bhd., another portfolio company of Creador, raised about 1.2 billion ringgit in an IPO in 2021.
Any deal will help catalyze the Malaysian IPO market, which hosted only two offerings and raised $76.7 million in total so far this year, according to data compiled by Bloomberg. Besides Eco-Shop, dietary supplement maker DXN Holdings Bhd., is also seeking to list on the Bursa Malaysia this year. State-owned Johor Corp. is working with advisers on a domestic listing of its plantation unit as soon as 2023, Bloomberg News has reported.
Founded in 2003, Eco-Shop sells a variety of products such as food, beverage, stationery and daily household necessities at an affordable fixed price of 2.40 ringgit, according to its website. The company operates more than 200 outlets throughout Malaysia. Creador bought a stake in the company in 2019.
--With assistance from Ravil Shirodkar.
©2023 Bloomberg L.P.
