KUALA LUMPUR (Sept 23): EcoSys (Malaysia) Bhd, a Penang-based semiconductor services firm, is offering its shares at 27 sen a piece for its ACE Market listing.
The initial public offering (IPO) will raise RM39.34 million that will go towards expansion and operations, according to its official prospectus unveiled on Wednesday. There is no accompanying offer for sale, which means existing shareholders are not cashing out under the IPO.
Applications for the IPO will close on Sept 29. EcoSys is scheduled for listing on Oct 14.
“The IPO proceeds will support the expansion of our abatement segment, strengthen our UHP fabrication and operational capabilities, and advance our presence in India,” EcoSys managing director Chan Chee Wei said at the prospectus launch.
Backed by Solarvest Holdings Bhd (KL:SLVEST), EcoSys’ main business 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 annual revenue.
However, EcoSys has earmarked RM17 million of the IPO 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 has also set aside RM4.93 million to acquire other machinery and expand its team. EcoSys has also allocated RM1.54 million to expand its India operations, including setting up a sales and service centre and recruitment.
The rest will be used to repay bank borrowings, as working capital, and to cover listing expenses.
At the listing price of 27 sen per share, EcoSys will have a market capitalisation of about RM154 million upon listing, valuing it at about 14 times its trailing earnings. For 2025, the company recorded revenue of RM108.94 million and net profit of RM11.20 million.
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.