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OTHERS ECO-SHOP MARKETING BERHAD ("ECO-SHOP" OR "COMPANY")
VARIATION AND EXTENSION OF TIMEFRAME OF THE UTILISATION OF PROCEEDS RAISED FROM THE INITIAL PUBLIC OFFERING ("IPO")
ECO-SHOP MARKETING BERHAD
Type
Announcement
Subject
OTHERS
Description
ECO-SHOP MARKETING BERHAD ("ECO-SHOP" OR "COMPANY")
VARIATION AND EXTENSION OF TIMEFRAME OF THE UTILISATION OF PROCEEDS RAISED FROM THE INITIAL PUBLIC OFFERING ("IPO")
1. Introduction
The Board of Directors of Eco-Shop ("Board") wishes to inform that it has approved the variation of the utilisation of proceeds raised from the IPO exercise ("Variation") in conjunction with the listing of and quotation for its entire share capital on the Main Market of Bursa Malaysia Securities Berhad ("Bursa Securities") on 23 May 2025 and extend the timeframe for the use of the IPO proceeds ("Extension").
2. Details of the Variation and Extension
The details of the Variation and Extension as at 28 April 2026 are as follows:
Utilisation of proceeds
Proposed utilisation
Amount utilised
Variation
Balance to be utilised
Timeframe for utilisation of proceeds (from 23 May 2025)
Revised timeframe for utilisation of proceeds (from 23 May 2025)
RM'000
RM'000
RM'000
RM'000
Opening of new stores
56,270
56,270
3,093(3)
3,093
Within 12 months
-
Distribution centre expansion plan
200,000
167,514
-
32,486
Within 12 months
Within 24 months(4)
Investment in information technology hardware and software
8,520
5,381
-
3,139
Within 12 months
-
Repayment of bank borrowings
100,000
100,000
-
-
Within 3 months
-
Defray fees and expenses for the IPO and Listing
27,320
24,227
(3,093)(2)
-
Within 9 months(1)
-
Total
392,110
353,392
-
38,718
Notes:
(1)
Revised as per the Company's announcement made to Bursa Malaysia Securities Berhad dated 24 October 2025.
(2)
Following the completion of the listing exercise, the actual expenses incurred were lower than originally estimated, resulting in a surplus.
(3)
Pursuant to the Variation, the amount earmarked for Defray fees and expenses for the IPO and Listing will be reallocated to finance the opening of new stores.
(4)
The expansion plan of the distribution centre is on-going and the Company expects a delay in the implementation of the said plan due to the receipt of certain requisite documents were delayed from the relevant parties. The Company is currently awaiting these documents and is actively engaging and following-up with the relevant parties to expedite the process. The Extension is not expected to have any material adverse effect on the Group's business operations, store expansion plans or financial performance.
3. Rationale
After careful deliberation of the operational needs of the Company and its subsidiaries ("Group"), the Board has decided on the following:-
(i) To re-allocate the utilisation of proceeds earmarked for Defray fees and expenses for the IPO and Listing to Opening of New Stores to support the Group's expansion; and
(ii) To extend the timeframe for the utilisation of proceeds for Distribution centre expansion plan to allow the Company more time to implement the expansion plan.
The Board is of the view that the Variation represents an efficient utilisation of the IPO proceeds and Extension, which is in line with the Group's ongoing expansion plans and growth objectives.
4. Approvals Required
The Variation and Extension are not subject to any regulatory or shareholders' approval. The Board is of the opinion that the Variation and Extension will not have any adverse effect on the financial performance of Eco-Shop and would be in the best interest of the Group.