KUALA LUMPUR (March 18): Industrial chemicals distributor Eckem Holdings Bhd has received approval from Bursa Malaysia Securities Bhd to list on the ACE Market.
In a statement on Wednesday, the group said proceeds from its proposed initial public offering (IPO) will be used to fund the construction of a new corporate office, warehouse and laboratory, alongside the expansion of a production line for its rubber products segment.
“Receiving Bursa Securities’ approval marks an important step in Eckem Holdings’ journey towards becoming a publicly listed company. This IPO will allow us to strengthen our operational capabilities, expand our infrastructure and position Eckem Holdings for the next phase of growth,” said executive director Jack Tan Khai Jeik.
Eckem released its draft prospectus in October last year, outlining a public issuance of 125 million new shares and an offer for sale of 62.5 million existing shares. The IPO price and market value have yet to be announced.
Founded in 2007, Eckem’s core business lies in the distribution, sale and formulation of specialty industrial chemicals, which contribute the bulk of its revenue. The group also manufactures and trades rubber-based products, including personal care and lifestyle items.
The company was established by husband-and-wife team Tan Kwang Wah and Sam Lai Yoong. Their sons are actively involved in the company's management. Tan Khai Jeik serves as executive director, while Tan Khai Wen is chief operating officer.
Beyond infrastructure expansion, Eckem said proceeds from the IPO will also go towards repayment of bank borrowings, working capital requirements and listing expenses.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.