The public listing of Malaysian discount retailer Eco-Shop has propelled its founder, Lee Kar Whatt, into the billionaire ranks.
According to the Bloomberg Billionaires Index, the IPO on Friday—Malaysia’s largest since September 2024—left Lee with a post-listing stake worth approximately US$1.15 billion.
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A checkout counter of an Eco-Shop outlet in Malaysia. Photo courtesy of Eco-Shop |
The operator of 350 dollar stores across Malaysia has recorded revenue rising more than 50% in the last two fiscal years as demand for affordable goods rose amid inflation, said Zhu Hann Ng, founder and chief executive officer of Tradeview Capital, a fund manager in Kuala Lumpur.
“Fixed-price retailers became a first choice,” Hann said, referring to the MYR2.60-ringgit ($0.61) price tag on all products in Eco-Shop stores in peninsular Malaysia, according to Bloomberg.
Lee launched the first store in 2003 with some collaborators. He works out of the company’s headquarters in Jementah, around a three-hour drive away in the southeast of Kuala Lumpur.
The debut marked an encouraging development for Malaysia’s market, which had lost momentum following 55 IPOs in 2024 due to tariffs, as reported by Fortune.
Despite Eco-Shop’s IPO shares being priced lower than initially planned, the listing demonstrates continued investor interest in affordable, mass-market consumer brands.
However, Eco-Shop faces competition from established players like Mr DIY Group (M) Bhd. and smaller emerging chains led by entrepreneurs from mainland China, Hann said.
“We feel the market in Malaysia is quite saturated” and the company’s “upside is capped,” he added.
Eco-Shop, in its prospectus, asserts there is substantial potential for expansion, planning to open around 70 new stores each year for the next five years.
