KUALA LUMPUR (July 2): Ekonusa Bhd, a plastic products manufacturer, is seeking to raise funds from the ACE Market to partly finance construction of a new factory in Selangor.

Construction is expected to cost about RM15 million, according to its draft prospectus posted to Bursa Malaysia. The new factory with a built-up area of over 52,000 sq ft will sit on land acquired in February and located about 15km away from its existing facilities.

The new factory will expand its production capacity, particularly for plastic bottles, to meet the growing demand from existing and new customers, Ekonusa said.

Based in Shah Alam, Selangor, Ekonusa mainly produces plastic bottles and pails used as packaging of industrial and consumer goods ranging from fertilisers to shampoo.

The company’s current facilities, including its warehouse, are fully utilised.

For a start, the new factory will house 10 extrusion blow moulding machines that will increase the production of plastic bottles by up to 58% to about 57.65 million units as well as a labelling machine once operations begin by the end of 2028, Ekonusa said.

Proceeds from the initial public offering (IPO) will also be used to purchase some of the extrusion blow moulding machines and as working capital.

A group of existing shareholders, including co-founders Seng Yook Yong, Bryan Lee, and Eric Lee as well as executive director Tan Swee Hin, will also cash out part of their stake in Ekonusa through an offer for sale of existing shares.

Seng is the chief executive officer of Ekonusa. Bryan Lee is in charge of finance while Eric Lee is responsible for marketing; both are not related. Tan, meanwhile, is the human resource director.

All in all, the IPO will offer up to 30% in the company that made a net profit of RM6 million on revenue of RM54 million last year.

Affin Hwang Investment Bank is the principal adviser, underwriter and placement agent for the IPO.