KUALA LUMPUR: EcoSys (Malaysia) Bhd, an industrial solutions provider serving the pan-semiconductor industry, made its debut yesterday on the ACE Market of Bursa Malaysia Securities Bhd with group’s shares opening at RM0.70 per share, compared with its initial public offering (IPO) price of RM0.27 per share, representing a premium of 159.26%.
EcoSys and its subsidiaries provide two complementary categories of industrial solutions: ultra-high purity (UHP) fabrication of precision engineering components and sub-assembly modules, and the research and development (R&D), customisation, assembly, installation, testing, commissioning and maintenance of abatement systems.
Its solutions support applications across semiconductor manufacturing equipment, front-end semiconductor manufacturing equipment, solar photovoltaic (PV) panels manufacturing equipment and industrial gas supply systems.
Through the IPO, EcoSys raised approximately RM39.34 million in gross proceeds from the issuance of 145.7 million new ordinary shares.
The proceeds will be channelled towards expansion of the abatement segment through the purchase of key components and modules of abatement systems (RM17 million); repayment of bank borrowings (RM8 million); enhancement of operational capabilities through the purchase of machines and expansion of the group’s team (RM4.93 million); expansion of geographical coverage in India, including the establishment of an India sales and service centre and recruitment of local personnel (RM1.54 million); for working capital to support day-to-day operations (RM2.36 million) and estimated listing expenses (RM5.5 million).
Managing director Chan Chee Wei said their listing on the ACE Market reflects the progress they have made in building specialised technical capabilities, proprietary abatement technologies and relationships with customers across the pan-semiconductor industry. More importantly, he added it gives them a stronger platform to execute their next phase of growth.
“The capital raised will support the expansion of our abatement segment, strengthen our UHP fabrication capabilities and enable us to establish a more direct presence in India. As a listed company, we remain focused on disciplined execution, continuous innovation and creating sustainable value for our shareholders, customers and business partners,” said Chan.
M&A Equity Holdings Bhd managing director Datuk Bill Tan said, “EcoSys enters the public market with a differentiated combination of UHP fabrication capabilities and proprietary abatement system technologies. Its exposure to semiconductor and solar-related manufacturing activities, established customer relationships and ongoing investments in operational capabilities provide a solid foundation for future development. We are pleased to have supported the group in reaching this important milestone.”
Eco Asia Capital Advisory Sdn Bhd group CEO Datuk Kelvin Khoo shared, “The listing provides EcoSys with greater financial flexibility and a stronger corporate platform to pursue its expansion plans. Its intended investments in production capabilities, talent and regional market development are aligned with the group’s objective of strengthening its position in the pan-semiconductor value chain. We believe EcoSys is well-positioned to build on opportunities across its target markets.”
M&A Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO while Eco Asia Capital Advisory is the financial adviser.