PETALING JAYA: ECA Integrated Solution Bhd has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd (UOBKH) in conjunction with its forthcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
The automated manufacturing solution provider’s IPO exercise includes a public issuance of 150 million new shares, representing 26% of its enlarged share capital, as well as an offer for sale of 48 million existing shares, representing 8.3% of the enlarged shares, by way of a private placement to selected investors.
Of the 150 million new shares, 28.9 million shares will be made available to the Malaysian public via balloting, with another 14.4 million shares going to its eligible directors, employees, and persons who have contributed to the success of the group.
The remaining 106.7 million shares are reserved for selected investors by way of private placement.
ECA Integrated’s executive director and chief executive officer Ooi Chin Siew said by tapping into the equity capital market, the group can expedite its growth as the fresh funds would endow it with greater agility to expand.
“We see many opportunities in the market, both locally and overseas, given the numerous catalysts pushing towards accelerated adoption pace for manufacturing automation,” he said in a statement yesterday.
The automated manufacturing solutions in Malaysia, according to an independent market research done by Providence Strategic Partners, is projected to grow at a compounded annual growth rate of 19.3% between 2022 and 2024.
“This is where ECA Integrated comes in as it is our strength to provide both integrated production systems and standalone automated equipment for our clients.
“Looking ahead, we shall allocate the bulk of our IPO proceeds to scale up our capability and capacity through investing in new high-speed machinery, as well as boost our working capital to support existing and future growth,” Ooi added.
More than half of its revenue for the financial year ended Oct 31, 2021 was derived overseas, including eastern and western Europe, China, Singapore, Vietnam, the Philippines and the United States.
The group is scheduled to be listed on the ACE Market by November 2022.