KUALA LUMPUR (Jan 2): EcoSys (Malaysia) Bhd, a Penang-based semiconductor services firm, is seeking a listing on the ACE Market to raise funds mainly for expansion and operations.

Backed by Solarvest Holdings Bhd (KL:SLVEST), EcoSys is looking to buy components for the manufacturing of abatement systems — equipment which treats harmful and toxic gases — and expand the business on the back of rising demand for semiconductors, its draft prospectus showed.

“We have received positive indications from our customers on the future demand for abatement systems, driven by their planned facility expansions and the corresponding need for abatement systems,” EcoSys said.

The company’s main business, however, is in fabrication of precision engineering components and sub-assembly modules used in semiconductor and solar panels manufacturing equipment — a business that contributed more than two-thirds to its revenue in 2024.

EcoSys would be the second firm backed by Solarvest heading for a listing; Kee Ming Group Bhd, a mechanical and electrical engineering firm, filed for an initial public offering (IPO) last week. Solarvest, a renewable energy firm, has also bought a 22% stake in Solar District Cooling Group Bhd (KL:SDCG).

The proposed listing of EcoSys will involve the public issue of new shares and no offer for sale of existing shares, meaning that existing shareholders are not cashing out through the IPO.

Apart from expanding its abatement business, the company also wants to improve its mainstay business with new equipment and more staff. EcoSys has also earmarked proceeds from the IPO for partial repayment of bank loans, as working capital and to pay off listing-related expenses.

For the year ended Dec 31, 2024, the company reported a net profit of RM9.24 million on the back of RM88.8 million revenue.

Founder and managing director Chan Chee Wei currently owns 70% in EcoSys, which will be diluted to about 52% post-IPO. Solarvest’s stake, meanwhile, will fall to 22.3% upon listing.

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

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