not vested
RIDING on property magnate Tan Sri Liew Kee Sin’s name, Eco World Development Group Bhd, is a stock that should be watched closely. This is despite the fact that Liew’s name has never appeared in the company.
His eldest son Liew Tian Xiong, however, is the single largest shareholder with a 35% stake in the company. Junior Liew is also a director in the property firm at a tender age of 23.
After a reverse takeover (RTO) was done on Focal Aims Holdings Bhd for RM1.40 apiece, the stock has more than tripled to RM4.39.
Although there were no major announcements related to corporate exercises, save for the change in name, board, and financial year-end, the market is anticipating something positive from the company.
Sources say announcements on the company’s corporate exercise, which might include a placement and/or asset injection, could be done in the near-term.
Its net asset per share as of Sept 30, 2013 stood at RM1.27. Some of the listed company’s core assets included 426ha in Plentong and 1,011ha in Kota Masai, Johor.
The interesting part will be Eco World Development Holdings Sdn Bhd (formerly known as Maple Quay Sdn Bhd), which now owns some 30% in the listed company.
Before the RTO, the then privately held entity, was reported to co-own with another private company 1,214ha in Penang, Johor and the Klang Valley with a gross development value of RM30bil.
Home-buyers showed confidence in the company as they snapped up units in EcoBotanic and flooded its KL showroom before its official launch.
Catalysts
- Big name linked to the company.
- Possible near-term corporate exercises including assets injection.
- Experienced management team.
- Overwhelming response to product launches.
Risks
- Lack of information to gauge the stock’s actual value.
- Slowdown in property market.
- Low liquidity.
Source: The Star