MBOC 7013 Financial Management Assignment 2025/26 | IUMW

MBOC 7013 OPEN & DISTANCE LEARNING (ODL) OVERVIEW

ODL is a learning delivery in correspondence to independent study, distance teaching, technology-based or mediated education, or e-learning mode. ODL learning modules at UM-Wales are crafted as a Self-Instructional Module where students will be able to learn the topic at their own pace but with guidance and facilitation from our academic team. You will need to complete the lesson following the set sequence whereby you will only be able to proceed to the next topic, once you have completed the previous topic. This self-paced study must still be within the given period that is required for students to complete the lesson.

FINANCIAL MANAGEMENT MODULE SYNOPSIS

The objective of this course is to develop a critical stance in investigating current development in Finance. It draws upon the knowledge of financial management theory and practices, studied in previous finance courses. To provide an informed and critical perspective, students are expected to conduct an independent research from a range of sources including journal articles and certain internet sites. Students will be expected to develop depth of thought and evaluate practical applicability through the case study analysis. The study of financial management at an advanced level ensures that students can exercise judgments and techniques to make commercial value added decisions in strategic financial management and are able to adapt to factors affecting those decisions

LEARNING OUTCOMES

Upon the successful completion of this module, the student should be able to:

CLO1.  Evaluate the applications of relevant theories in corporate finance from different organisational context (C4, PLO2).

CLO2. Compute numerical computations of financial analysis and forecasting (C3, PLO7).           .

CLO3. Differentiate between equity, debt and options financing and implications for risks and returns (A3, PLO9).

OUTLINE DELIVERY

The completion of all lessons is compulsory for students to be awarded the MBA qualification by UM-Wales under the ODL delivery. As ODL is crafted to fit the ‘distance learning’ concept, students will need to have the discipline and be more independent in following all the self-instruction methods via video lectures, notes, activities, etc. The following would be the checklist of all lessons that you will need to go through in 12 weeks:

READING LIST & RESOURCES

ONLINE ACCESS 

You can access this module information via the following channel:

Open Learning

Link: MBOC7013: Financial Management ODL

Course Name: Financial Management (MBOC 7013)

ASSIGNMENT 

(Submission Week 4 – 19th Oct And Week 8-23rd Nov, 2025)

The completion of the assignment  with a minimum standard requirement that meets master’s level standard is required for students to be awarded the MBA qualification by UM-Wales under the ODL delivery. The assignment was curated to assess students’ knowledge, application, and delivery based on the learning outcome of the module.

TASK DESCRIPTION

Case Study: Initial Public Offering Of Ordinary Shares Of Eco-Shop Marketing Bhd

This is a case study on a company, Eco-Shop Marketing Bhd, a Malaysian dollar store retailer, held its Initial Public Offering (IPO) in April 2025, The company is in the process of raising funds from the capital market through the issuance of new shares and offers for the sale of existing shares. The prospectus was issued on 29th April 2025.  To ensure the success of the subscription of the shares, the owners and management intend to conduct a roadshow for all categories of investors as well as to the analyst.

YOUR TASKS: 

You are the Chief Investment Officer of an International Investment Firm. You are required to analyze the largest IPO on Bursa in 2025 and prepare a recommendation to your management/board to accept or reject the investment for the said IPO.  You need to review the prospectus (a summary of the prospectus is attached and please read the full prospectus from Bursa Malaysia or the company’s website) as well as all other available information. Useful information especially from class lectures; news reports, selected reading materials as well as each student’s diversified experience and academic background will definitely help the students to make an informed decision on the investment choices available. The company will be listed on the main market of Bursa Malaysia very soon and all information regarding the prospect and performance of the company is available on Bursa’s website, the business section of major newspapers, and the company’s website.

The purpose of the study is to improve the understanding of students especially on Equity Analysis (stock valuation)  and  the application of finance theories to the fund-raising exercise. The case study will be in a form of an individual project and to ensure that the exercise achieves its intended objective, compulsory participation is required from all the students.

The assignment requires the students to perform the following:

Understand the business operation, climate, and the economic environment and compare with the competitors;
Understand the purpose of fund-raising (i.e. IPO);
Understand the company’s financial position and do a simple financial analysis and comparative evaluation;
Understand the purpose of making your investment and what is your strategies;
The return and risk and benchmark against other indicators;
Indicative valuation of fair value; and
Broad understanding of the financial markets

Required:

Each student needs to put up a MEMO (as real and as business-like as possible) on your analysis, findings and recommendation i.e. to subscribe or reject the share offering to your Top Management/Board for approval.

The MEMO should contain but not limited to the followings:

Format and Purpose (10 Marks)
Executive Summary (10 Marks)

Background (20 Marks)

Method of Analysis, Findings and Comments (35 Marks)
Recommendation and Justifications (20 Marks)

References (5 Marks) 

Summary of the IPO’s prospectus 

Eco-Shop Marketing Berhad IPO

KUALA LUMPUR, 29 April 2025 – Eco-Shop Marketing Berhad (“Eco-Shop”), Malaysia’s leading player in the dollar store retail sector, today unveiled its Initial Public Offering (“IPO”) prospectus in conjunction with its upcoming listing on the Main Market of Bursa Malaysia Securities Berhad, scheduled for 23 May 2025.

The IPO marks a significant milestone for Eco-Shop as it becomes the first dollar store retail chain to be listed in ASEAN, with a projected market capitalisation of approximately RM7.0 billion based on the IPO retail price of RM1.21 per share and an enlarged issued share base of 5.747 billion shares.

The IPO will raise approximately RM419.87 million through a public issuance of 347 million new shares, making it the largest IPO in Malaysia over the past eight months.

Eco-Shop has secured commitments from ten cornerstone investors, who collectively subscribed to 90.91 million shares, representing 90.31% of the Institutional Offering (excluding the Bumiputera Offering under the Ministry of Investment, Trade and Industry [MITI]). These cornerstone investors include:

AHAM Asset Management Berhad

Albizia Capital Pte Ltd

Areca Capital Sdn Bhd

Eastspring Investments Berhad

Kairous Equity Sdn Bhd

Kenanga Investors Berhad

Kenanga Islamic Investors Berhad

Lion Global Investors Limited

RHB Asset Management Sdn Bhd

RHB Islamic International Asset Management Berhad

Use Of IPO Proceeds 

The proceeds from the IPO will be strategically deployed to support Eco-Shop’s next phase of growth:

RM200.00 million (47.6%) for the expansion of distribution centres

RM56.27 million (13.4%) to accelerate retail footprint nationwide

RM100.00 million (23.8%) for repayment of bank borrowings

RM10.90 million (2.6%) for investment in IT hardware and software

RM52.70 million (12.6%) for working capital and IPO-related expenses

A Proven Track Record Of Growth

Founded in 2003, Eco-Shop has grown into the dominant market leader in Malaysia’s dollar store retail segment, commanding an estimated 67.8% market share by revenue as of 31 December 2024. The company operates a nationwide network of 358 stores, including 22 Eco-Plus outlets, offering a broad array of affordable goods across personal care, household items, stationery, snacks, and more. Product pricing remains fixed at RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia and Langkawi, catering to the needs of value-conscious consumers.

For the financial year ended 31 May 2024, Eco-Shop recorded a profit after tax of RM177.28 million, followed by RM93.19 million for the six months ended 30 November 2024.

Favourable Market Outlook

According to an Independent Market Report, Malaysia’s dollar store retail sector remains underpenetrated compared to developed markets such as Japan, Canada, and the United States. With a projected compound annual growth rate (CAGR) of 14.2% from 2024 to 2029, the sector presents a significant runway for growth, supported by rising cost-of-living concerns, population expansion, and changing consumer preferences toward affordability and convenience.

Leadership Remarks

Speaking at the prospectus launch, Ms. Jessica Ng, Chief Executive Officer and Executive Director of Eco-Shop, remarked:

“In today’s environment where the rising cost of living continues to affect many households, our business model has never been more relevant. This IPO is not just a financial milestone—it represents our continued commitment to making a meaningful impact in the lives of the communities we serve. Our mission to ‘Make Life Easier’ drives everything we do, and we are poised to expand our footprint while delivering lasting value to our customers.”

Mr. Michael Oh-Lau, Chief Executive Officer of Maybank Investment Bank Berhad, the Principal Adviser, Joint Global Coordinator, Joint Bookrunner, and Sole Underwriter for the IPO, added:

“We are honoured to support Eco-Shop in this landmark IPO, which reflects the company’s enduring value proposition and operational excellence. Eco-Shop’s inclusive and affordable business model complements the national agenda of supporting sustainable domestic consumption and empowering communities.”

IPO Details

The IPO comprises a total offering of 862.146 million shares, of which:

675.368 million shares are allocated to institutional and selected investors (including Bumiputera investors approved by MITI) via bookbuilding

186.778 million shares are available to the Malaysian public at a retail price of RM1.21 per share.

Maybank Investment Bank Berhad serves as the Principal Adviser, Joint Global Coordinator, Joint Bookrunner, and Sole Underwriter. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are Joint Global Coordinators and Joint Bookrunners, while RHB Investment Bank Berhad is also a Joint Bookrunner.

Source:  Malaysia SME

Note:

This case study is intended to be a “real world learning” exercise and the success of the exercise depends very much on active participation and research by all the students.  Last but not least, enjoy the  project.

Each student is required to attach the front cover of the assignment.

Final Assignment Due Date: 

Part A- 4th Week Lecture (18th October, 2025)
Part B- 8th Week Lecture (22nd  November, 2025)

MODULE COMPLETION

The completion of this module is compulsory for you to be awarded the MBA qualification by UM-Wales under the ODL delivery. The following would be the checklist of what you need to accomplish to pass this module:

Complete all 12 lesson pages that comes with learning materials & activities
Submit all assignments and sit for final exam with quality that is fit with the Masters’ level

FEEDBACK

You are entitled to feedback on your performance for all your assessed work. For all assessment tasks that are not examinations, feedback should be within 20 working days from the date of submission. This might be extended to 30 days for a Major Project module (please note that working days excludes from public holiday). The feedback could either be online, during live session or any other platform utilised by the lecturer.