PETALING JAYA: Industrial chemicals distributor Eckem Holdings Bhd aims to raise RM15 million from its initial public offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Bhd scheduled for July 3, 2026.
The IPO comprises a public issue of 125 million new ordinary shares at an issue price of 12 sen per share, the group said in a statement in conjunction with the prospectus launch.
Of the total proceeds, RM6 million will be utilised for the construction of a new corporate office, warehouse, and laboratory to strengthen the group’s operational infrastructure, while RM2 million will be allocated to expand a new production line for its rubber products segment to enhance manufacturing capabilities, it said.
Eckem Holdings said it will also use RM1.45 million to repay bank borrowings to optimise its capital structure, RM1.75 million for working capital requirements to support ongoing business operations, and RM3.8 million for listing expenses.
Meanwhile, executive director Jack Tan said the company remains cautious yet optimistic amid the United States-Iran conflict that is affecting the global petrochemical supply chain.
"Prior to this conflict, every year we set one-year and three-year targets for the company to achieve. However, with this sudden disruption, we are still trying to push through with what we had set earlier this year.
"We will increase our production capacity by adding another manufacturing line, and we intend to proceed with that despite the supply challenges,” he told a press conference after the company’s prospectus launch here today.
Tan said that on the distribution side of the business, the group has been in discussions since last year with several new brands that it plans to represent in Malaysia and Singapore.
"Those discussions are still ongoing, and we should be able to see some positive results as early as this year, with greater positive impact expected in 2027,” he said.
When asked about the main challenges faced by the company and the industry, apart from geopolitical tensions, Tan said the industry is facing price dumping from China, similar to many other sectors.
"That is something the management is taking very seriously because most of the brands we represent are from European countries.
"With that said, we are also actively looking to add some Chinese products into our portfolio, and I want to stress that these are quality Chinese products, so that we can enjoy the best of both worlds,” he said.
Meanwhile, Tan said there will inevitably be price increases for the company’s products, and margins could come under pressure if higher costs cannot be passed to customers.
"We are trying to strike a balance where we can maintain a constant supply from suppliers while also maintaining healthy margins and continuing to provide quality products to our customers despite the current crisis,” he said.
Applications for the IPO open today and close on June 19, 2026, at 5 pm.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise. - Bernama
