KUALA LUMPUR (Oct 1): The public portion of EcoSys (Malaysia) Bhd's initial public offering (IPO) has been oversubscribed by 206.70 times ahead of its Oct 14 debut on the ACE Market of Bursa Malaysia.
The industrial solutions provider said in a statement Thursday that it received 31,734 applications for 5.93 billion shares, against the 28.57 million new shares made available for public subscription.
This makes EcoSys' public tranche the second most heavily oversubscribed on Bursa Malaysia this year, behind SRKK AI Bhd’s (KL:SRKKAI) 312.3 times.
Out of the total applications received, 12,109 were for 1.97 billion shares under the Bumiputera portion, representing an oversubscription rate of 136.77 times.
The remaining public portion attracted 19,625 applications for 3.97 billion shares, resulting in an oversubscription rate of 276.63 times.
In addition to the public issue, the group is issuing 11.43 million shares to eligible persons, which have been fully subscribed.
It is also placing out 71.42 million shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), alongside 34.28 million shares to selected investors. All placement tranches have also been fully taken up.
EcoSys managing director Chan Chee Wei said the group, which is primarily in the fabrication of precision engineering components and sub-assembly modules used in semiconductor and solar panels manufacturing equipment, is encouraged by the robust investor demand.
"The interest shown in our IPO provides us with further motivation to execute our growth plans with discipline and continue building on the technical capabilities developed over the years," Chan said in a press statement.
"The capital raised will support the expansion of our proprietary abatement segment, enhance our ultra-high purity (UHP) fabrication and operational capabilities and strengthen our presence in India.
"These initiatives are intended to position EcoSys closer to customers and provide us with additional capacity to capture opportunities across the pan-semiconductor and solar manufacturing ecosystem," he added.
Backed by Solarvest Holdings Bhd (KL:SLVEST), EcoSys' IPO was priced at 27 sen per share to raise RM39.34 million.
From the total proceeds, EcoSys will be allocating RM17 million 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.
Of the balance, it plans to use RM8 million to repay bank borrowings, RM5.5 million for listing expenses, RM4.93 million to acquire other machinery and expand its team, RM2.36 million for working capital, and RM1.54 million to establish a sales and service centre in India.
Notices of allotment will be issued to successful applicants by Oct 8.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.