Eco World Development Sdn Bhd director Liew Tian Xiong.KUALA LUMPUR: Eco World Development Group Bhd’s recent surge in its share price hit a speed bump on Wednesday, falling to a low of RM3.94 at midday as it valuations could have been deemed expensive.
At midday, its share price was down 47 sen to RM3.94, the steepest decline since its run-up in late September. Turnover was 2.45 million shares.
The FBM KLCI fell 5.24 points to 1,829.73. Turnover was 1.24 billion shares valued at RM1.25bil. There were 262 gainers, 444 losers and 294 counters unchanged.
At RM3.94, it was trading at a steep price-to-earnings of 40.92 times compared with the average P/E of 15.96 times for other property stocks.
On Sept 17, 2013, StarBiz reported Eco World Development Holdings Sdn Bhd was taking control of Focal Aims Holdings Bhd with the purchase of 65.5% or 164 million shares for RM230mil or RM1.40 a share which would see it launching a takeover for the remaining stake.
Its all time high of RM4.51 on Jan 10, 2014.
Focal Aims share price has surged since Sept 17 when Eco World and Liew Tian Xiong – son of SP Setia Bhd president and CEO of Tan Sri Liew Kee Sin — offered to buy 164.77 million shares or 65.05% for RM230.68mil cash or at RM1.40 a share.
Tan Sri Abdul Rashid Abdul Manaf and Datuk Eddie Leong Kok Wah are directors of Eco World and former directors of SP Setia. They are also close associates of Liew Kee Sin.