KUALA LUMPUR (Oct 8): Eckem Holdings Bhd, a family-run industrial chemicals distributor, has filed for a listing on the ACE Market to raise funds for expansions and operations.

The proposed listing will offer up to 30% in the company founded by a husband-and-wife team of Tan Kwang Wah and Sam Lai Yoong, according to its draft prospectus. Their sons are also part of the management; Tan Khai Jeik is an executive director while Tan Khai Wen is the chief operating officer.

“Malaysia and Singapore are the foundation for further growth of our business,” Eckem said. “We will continue to focus on strengthening our brand recognition and solidifying our current market position by deepening our penetration of the specialty industrial chemicals industry.”

Eckem, set up in 2007, mainly sells specialty industrial resins, pigments, and additives used in paints, construction materials, personal protective equipment, inks, household products, and adhesives.

The company also manufactures rubber products, including dental dams and latex sheets, as well as lifestyle products such as exercise bands. Last year, Eckem made a profit after tax of RM5.65 million on the back of revenue of RM43.93 million.

Kwang Wah, the managing director of Eckem, will be placing a chunk of his existing shares for sale under the initial public offering (IPO) while his wife and two sons will be cashing out their entire stakes in the company. He will still hold about 68% in the company post-IPO.

Proceeds from IPO’s public issue, meanwhile, will be used for construction of a new corporate office, warehouse and laboratory. The company is also planning to expand its production line for rubber products at its Rawang factory running at about 75% of its capacity.

“As we plan to grow our manufacturing and trading of rubber products segment and anticipates a higher utilisation rate of our manufacturing facility, we intend to increase our production capacity by adding a new production line,” Eckem said.

Eckem will also use the proceeds from the IPO to repay bank borrowings, fund its working capital requirements, and defray listing expenses.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.