Eco-Shop’s 300th outlet at NU Sentral, Kuala Lumpur.
Eco-Shop Marketing, Malaysia’s largest discount store chain by revenue, is gearing up for the country’s biggest IPO this year, with the maiden share sale valuing the company at 7 billion ringgit ($1.6 billion).
Under the IPO, the company is selling up to 347 million new shares to retail investors at 1.21 ringgit per share and an additional 515 million existing shares to institutional investors at the same price in a private placement, raising 1 billion ringgit in both tranches, according to the company’s IPO prospectus that was released on Tuesday.
With the maiden share sale, cofounder and managing director Lee Kar Whatt, 52, will become a billionaire with an estimated net worth of $1.1 billion. Eco-Shop will start trading on Bursa Malaysia on May 23.
If all the shares are fully subscribed, Lee will own a post-IPO stake of 73%. While Private equity firm Creador which acquired a 10% stake of Eco-Shop in 2019 for an undisclosed amount, will reduce its stake to 1.9% after the IPO.
The bulk of the proceeds from the new share sale has been earmarked to build distribution centers, expand the company’s retail network, and repay debt.
Lee started Eco-Shop in 2003 with his brother Lee Tiong Bin and two partners. It has since grown more than 350 stores across Malaysia and plans to open 70 new stores annually over the next five years. Its net profit jumped 70% to 177 million ringgit in 2024 as revenue rose 26% to 2.4 billion ringgit.
Source: https://www.forbes.com/sites/yessarrosendar/2025/04/30/discount-retail-chains-ipo-could-turn-founder-into-malaysias-newest-billionaire/