Eco-Shop Marketing, the discount retailer, experienced a surge in popularity on its first trading day in Malaysia’s bourse, marking the company’s founder, Lee Kar Whang, and the longest-time shareholder as a billionaire with an estimated net worth of $1.3 billion. Through a strategic approach, the company successfully raised $974 million by selling 347 million new shares at a lower price of $1.13 per share, a 1.8% discount from the initially announced offering price of $1.21 per share.回馈 to the retail investors and institutional investors, Eco-Shop closed the initial day at a high of 1.25 ringgit but later narrowed the price to 1.20 ringgit before closing at the final 1.20 ringgit mark, giving them a modest gain.
The company, which sells household goods at an established price of 2.60 ringgit each, also leveraged the proceeds from the share sale to build distribution centers and expand its distribution network. With 350选址 in Kuala Lumpur, Eco-Shop saw its net profit jump by 70% to 177 million ringgit in 2024, while revenue increased by 26%, showcasing its strong growth trajectory. Lee, the company’s co-founder, started in 2003 alongside his brother Lee Tiong Bank Bin and two partners, and with 350 stores running alongside its operations. His entrepreneur commitment and company’s success have made him a star in the Malaysian scenario.
Lek Eng Chem introduced the new, lower share price as a response to investors’ desire for a modest return amidst a robust market. With 70 new stores expected annually over the next five years, Eco-Shop promises a double-digit growth in the foreseeable future. Lee mentioned the outlook seems promising, stating that it will generate a 10-12% sales increase in the next two years. In addition to building its distribution capabilities, the company has devised plans to repay its debt, further solidifying its financial health and resilience.
Lee Amaw Ong confidently highlighted the company’s growth and achievements, emphasizing that climbing a new store on average promises dividends. However, with a focus onCharity, Mr. Lee donates 1 million ringgit towards the needs of southern Turkey’s earthquake victims in 2023. His philanthropic efforts have regenerated the company despite the low share price, making him, one of the most successful entrepreneurs on theMALAYA stage of the year. A closer look at his story underscores that Lee Amaw Ong’s relentless commitment to both his business and his people not only earns an external reputation but also fuels the determination of future leaders in Malaysian retail.
In summary, Eco-Shop Marketing’s successful IPO on theMalaysian bourse taught the retail sector the value of cash flow, rein statement of proven business success, and a strong commitment to philanthropy. The future holds even brighter prospects for Lee Kar Whang and his team, with a vision to achieve explosive growth as the company continues to expand its operations and invests more in development.
