KUALA LUMPUR (Aug 6): EcoSys (Malaysia) Bhd, a Penang-based semiconductor services firm, is seeking to raise RM39.34 million from its listing on the ACE Market.

M&A Securities has been brought in as underwriter for its initial public offering (IPO), according to a statement. While EcoSys did not disclose a timeline, a company would have to complete its listing within six months from the date of Bursa Malaysia’s approval, which was granted on June 8.

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.

The company’s main business, however, is in the 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.

“The signing of the underwriting agreement represents another important milestone in EcoSys’ journey towards becoming a publicly listed company,” said managing director Chan Chee Wei.

Under the agreement, M&A Securities will underwrite the shares set aside for the Malaysian public as well as ‘pink form’ allocations for eligible persons.

EcoSys would be the second firm backed by Solarvest heading for a listing; Kee Ming Group Bhd, a mechanical and electrical engineering firm, was listed in February. Solarvest, a renewable energy firm, has also bought a 22% stake in Solar District Cooling Group Bhd (KL:SDCG) and 13% in Sarawakian construction firm Hartanah Kenyalang Bhd (KL:HKB).

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.

Chan, who is also the founder of Ecosys, currently owns 70% of EcoSys, which will be diluted to about 52% post-IPO. Solarvest’s stake, meanwhile, will fall to 22.3% upon listing.

M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO. Eco Asia Capital Advisory Sdn Bhd is the financial adviser.