KUALA LUMPUR (Sept 29): Automated manufacturing solutions provider ECA Integrated Solution Bhd has inked an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities.
In a statement, the group said its IPO encompasses 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 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; 14.4 million shares to its eligible directors, employees, and persons who have contributed to the group; while the remaining 106.7 million shares will be reserved for selected investors by way of private placement.
ECA Integrated is principally engaged in the provision of integrated production systems and stand-alone automated equipment. It also provides after-sales services for technical support services and spare parts.
More than half of its revenue for the financial year ended Oct 31, 2021 was derived from overseas markets, including Eastern and Western Europe, China, Singapore, Vietnam, the Philippines, as well as the US.
ECA Integrated executive director cum chief executive officer Ooi Chin Siew said the group will allocate the bulk of its IPO proceeds to scale up its capabilities and capacities through investing in new high-speed machinery, as well as boost its working capital to support existing and future growth.
"By tapping into the equity capital market, we can expedite our growth as the fresh funds will endow us with greater agility in our expansion plans to capitalise on prospects ahead," he said.
According to Ooi, the group sees many opportunities in the market, both locally and overseas, given the numerous catalysts pushing towards accelerated adoption pace for manufacturing automation.
"Large manufacturers globally are shifting towards smart factories for greater efficiency and productivity while reducing reliance on manual labour. In addition, there is the upsurge in outsourcing and relocation of manufacturing activities to Southeast Asia and Eastern Europe.
"Back home, our government has allocated funds to support small and medium enterprises in their technological transformation in line with Industry4WRD. The automated manufacturing solutions in Malaysia, according to an independent market research done by Providence Strategic Partners, are projected to grow at a compound annual growth rate of 19.3% between 2022 and 2024," he said.
ECA Integrated is scheduled to be listed on Bursa's ACE Market by November 2022, with UOB Kay Hian Securities as the principal adviser, sponsor, sole placement agent, and sole underwriter for its IPO.