KUALA LUMPUR (Aug 24): Eco World International Bhd is giving out a RM792 million dividend or 33 sen per share next month, with three of its largest shareholders entitled to nearly 70% or RM550.76 million.
Its largest shareholder Datuk Leong Kok Wah, through his direct holdings, Eco World Capital (International) Sdn Bhd and Sinarmas Harta Sdn Bhd, owns some 728.73 million shares or a 30.3% stake in the real estate developer, entitling him to some RM240.48 million of the total dividend.
Tan Sri Quek Leng Chan, through GLL EWI (HK) Ltd, a unit of Singapore-listed Guocoland Ltd, owns a 27% stake or 648 million shares, giving rise to an entitlement of RM213.84 million from the total dividend payout of RM792 million.
Meanwhile, Eco World International founder Tan Sri Liew Kee Sin and his family’s 12.2% stake or 292.24 million shares would give rise to an entitlement of RM96.44 million.
After deducting these three parties’ share of dividend, there will be RM241.24 million left for the remaining minority shareholders, who collectively own a 30.5% stake.
The dividend, announced on Thursday (Aug 24), comes following the completion of Eco World International’s capital reduction exercise on Aug 3.
The group had earlier said it was targeting to make a first tranche dividend distribution of at least RM300 million to shareholders, following completion of its capital reduction exercise.
“The significantly higher amount of RM792 million achieved is attributable to the steady progress made to-date on the sale of completed stocks that have generated substantial cash for the company,” said president and chief executive officer Datuk Teow Leong Seng.
He added that the group aims to work toward distributing more excess cash back to shareholders, after setting aside the necessary amount for the group’s working capital requirements.
Eco World International narrowed its net loss to RM4.56 million or 0.19 sen per share for the second quarter ended April 30, 2023 (2QFY2023), compared with RM67.35 million or a 2.81 sen loss per share a year earlier (2QFY2022).
The group attributed the improvement to higher foreign exchange (forex) gain, as the British pound strengthened against the Malaysian ringgit, higher interest income following capital contribution repayments from the UK joint ventures and lower finance costs due to the group’s progressive repayment of loans.
Shares of Eco World International, which climbed 64% year-to-date, closed half sen or 0.8% higher at 64 sen on Thursday, giving it a market capitalisation of RM1.54 billion.