KUALA LUMPUR, 29 April 2025 – Eco-Shop Marketing Berhad (“Eco-Shop”), Malaysia’s leading player in the dollar store retail sector, today unveiled its Initial Public Offering (“IPO”) prospectus in conjunction with its upcoming listing on the Main Market of Bursa Malaysia Securities Berhad, scheduled for 23 May 2025.
The IPO marks a significant milestone for Eco-Shop as it becomes the first dollar store retail chain to be listed in ASEAN, with a projected market capitalisation of approximately RM7.0 billion based on the IPO retail price of RM1.21 per share and an enlarged issued share base of 5.747 billion shares.
The IPO will raise approximately RM419.87 million through a public issuance of 347 million new shares, making it the largest IPO in Malaysia over the past eight months.
Eco-Shop has secured commitments from ten cornerstone investors, who collectively subscribed to 90.91 million shares, representing 90.31% of the Institutional Offering (excluding the Bumiputera Offering under the Ministry of Investment, Trade and Industry [MITI]). These cornerstone investors include:
- AHAM Asset Management Berhad
- Albizia Capital Pte Ltd
- Areca Capital Sdn Bhd
- Eastspring Investments Berhad
- Kairous Equity Sdn Bhd
- Kenanga Investors Berhad
- Kenanga Islamic Investors Berhad
- Lion Global Investors Limited
- RHB Asset Management Sdn Bhd
- RHB Islamic International Asset Management Berhad
Use of IPO Proceeds
The proceeds from the IPO will be strategically deployed to support Eco-Shop’s next phase of growth:
- RM200.00 million (47.6%) for the expansion of distribution centres
- RM56.27 million (13.4%) to accelerate retail footprint nationwide
- RM100.00 million (23.8%) for repayment of bank borrowings
- RM10.90 million (2.6%) for investment in IT hardware and software
- RM52.70 million (12.6%) for working capital and IPO-related expenses
A Proven Track Record of Growth
Founded in 2003, Eco-Shop has grown into the dominant market leader in Malaysia’s dollar store retail segment, commanding an estimated 67.8% market share by revenue as of 31 December 2024. The company operates a nationwide network of 358 stores, including 22 Eco-Plus outlets, offering a broad array of affordable goods across personal care, household items, stationery, snacks, and more. Product pricing remains fixed at RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia and Langkawi, catering to the needs of value-conscious consumers.
For the financial year ended 31 May 2024, Eco-Shop recorded a profit after tax of RM177.28 million, followed by RM93.19 million for the six months ended 30 November 2024.
Favourable Market Outlook
According to an Independent Market Report, Malaysia’s dollar store retail sector remains underpenetrated compared to developed markets such as Japan, Canada, and the United States. With a projected compound annual growth rate (CAGR) of 14.2% from 2024 to 2029, the sector presents a significant runway for growth, supported by rising cost-of-living concerns, population expansion, and changing consumer preferences toward affordability and convenience.
Leadership Remarks
Speaking at the prospectus launch, Ms. Jessica Ng, Chief Executive Officer and Executive Director of Eco-Shop, remarked:
“In today’s environment where the rising cost of living continues to affect many households, our business model has never been more relevant. This IPO is not just a financial milestone—it represents our continued commitment to making a meaningful impact in the lives of the communities we serve. Our mission to ‘Make Life Easier’ drives everything we do, and we are poised to expand our footprint while delivering lasting value to our customers.”
Mr. Michael Oh-Lau, Chief Executive Officer of Maybank Investment Bank Berhad, the Principal Adviser, Joint Global Coordinator, Joint Bookrunner, and Sole Underwriter for the IPO, added:
“We are honoured to support Eco-Shop in this landmark IPO, which reflects the company’s enduring value proposition and operational excellence. Eco-Shop’s inclusive and affordable business model complements the national agenda of supporting sustainable domestic consumption and empowering communities.”
IPO Details
The IPO comprises a total offering of 862.146 million shares, of which:
- 675.368 million shares are allocated to institutional and selected investors (including Bumiputera investors approved by MITI) via bookbuilding
- 186.778 million shares are available to the Malaysian public at a retail price of RM1.21 per share
Maybank Investment Bank Berhad serves as the Principal Adviser, Joint Global Coordinator, Joint Bookrunner, and Sole Underwriter. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are Joint Global Coordinators and Joint Bookrunners, while RHB Investment Bank Berhad is also a Joint Bookrunner.
