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Economy

Ekovest plans RM356m rights issue to fund LIKE, pare debts; major shareholder Lim Kang Hoo may trigger MGO

Ekovest Plans RM356m Rights Issue to Fund LIKE Expressway, Reduce Debt; Major Shareholder May Trigger Mandatory Takeover

Source: EdgeProp Malaysia · August 18, 2026 at 7:01 AM · AI-assisted report

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Ekovest plans RM356m rights issue to fund LIKE, pare debts; major shareholder Lim Kang Hoo may trigger MGO
Image: edgeprop.my

KUALA LUMPUR, 18 AUGUST 2026 —

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Ekovest Plans RM356m Rights Issue to Fund LIKE Expressway, Reduce Debt; Major Shareholder May Trigger Mandatory Takeover

Market Impact

KUALA LUMPUR (Aug 17): Ekovest Bhd (KL: EKOVEST) will raise up to RM355.85 million through a renounceable rights issue to partly fund the Laluan Istana-Kiara Expressway (LIKE) and two other projects, while repaying part of its borrowings.

The proposed fund-raising could trigger a mandatory general offer (MGO) by major shareholder Tan Sri Lim Kang Hoo and persons acting in concert (PACs) if other shareholders do not fully subscribe to their rights entitlements, potentially pushing their combined stake past the 33% threshold.

Ekovest plans to issue up to 1.78 billion new shares at 20 sen each, on the basis of three rights shares for every five existing shares held. The entitlement date will be determined later. At full subscription, the rights issue will expand Ekovest’s share base by 60% to 4.74 billion shares from the current 2.97 billion.

The 20 sen issue price represents a 1.86% discount to the theoretical ex-rights price of 20.38 sen, based on the five-day volume-weighted average market price of 20.61 sen up to Aug 14.

The rights issue will not be underwritten. Instead, Ekovest has secured irrevocable and unconditional undertakings from Lim and his wholly-owned vehicle, Ekovest Holdings Sdn Bhd, to fully subscribe to their entitlements. Ekovest Holdings has also agreed to take up any unsubscribed shares to ensure full subscription. Lim currently holds 17.96% of Ekovest, while Ekovest Holdings owns 10.05%. Together with PACs, their combined stake stands at 32.06%.

If no other shareholders participate, their collective interest could rise to as much as 57.54%, triggering an MGO for all remaining shares at no less than the issue price. While the joint offerors do not intend to seek exemption from the takeover obligation, they have no plans to take Ekovest private. Based on the issue price, Lim has committed about RM63.9 million for his entitlement, while Ekovest Holdings’ commitment is RM291.95 million.

The largest allocation of proceeds—RM150 million—will fund the RM2.32 billion LIKE project. Ekovest’s 70%-owned subsidiary, Lebuhraya DUKE Fasa 2A Sdn Bhd, signed the concession agreement for LIKE in March 2026. Construction of the 7.7km expressway is scheduled to begin in Q1 2027 and complete by Q4 2030.

Another RM100 million will be used to repay part of Ekovest’s RM1.07 billion borrowings as of Aug 12, estimated to yield annual interest savings of RM6.54 million. The remaining funds will be allocated to the EkoTitiwangsa development (RM45 million), the Setiawangsa-Pantai Expressway (SPE) (RM45 million), working capital (RM14.05 million), and estimated exercise expenses (RM1.8 million).

The proposed rights issue requires approval from Bursa Malaysia for the listing of new shares and from Ekovest shareholders at an extraordinary general meeting.

The development comes as Ekovest seeks to strengthen its balance sheet amid ongoing infrastructure investments. The LIKE project, in particular, is expected to enhance connectivity in the Klang Valley, aligning with national transport priorities. Analysts will monitor the rights issue’s subscription levels and potential MGO implications for minority shareholders.

Details not yet available on the expected timeline for shareholder approval or Bursa Malaysia’s review process.

Related: Bursa Malaysia

Reporting based on EdgeProp Malaysia. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.