KUALA LUMPUR (April 8): Industrial chemicals distributor Eckem Holdings Berhad has signed an underwriting agreement with M&A Securities for its initial public offering (IPO) and proposed listing on the ACE Market of Bursa Malaysia.

In a statement on Wednesday, the group said its IPO’s principal adviser M&A Securities will underwrite 62.5 million shares, representing 10% of its enlarged share capital, comprising shares allocated to the Malaysian public and eligible persons via pink form allocations.

A total of 31.25 million shares (5%) will be allocated for the Malaysian public, 31.25 million shares (5%) for eligible persons, 46.88 million shares (7.5%) for selected investors via private placement, and 15.63 million shares (2.5%) to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

Meanwhile, an offer for sale of 62.5 million (10%) existing Eckem shares to selected Miti-approved Bumiputera investors will be made by way of private placement.

‘’The IPO will allow us to strengthen our operational capabilities, increase production capacity and enhance our ability to customise specialised industrial chemical solutions to meet evolving customer requirements and market demands,’’ said by Eckem Holdings executive director Tan Khai Jeik.

Founded in 2007, Eckem Holdings’ 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.

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