EcoSys opens at 70 sen in ACE Market debut
The semiconductor services firm raised RM39.34 million through its IPO, with RM17 million earmarked for components to manufacture abatement systems.
EcoSys (Malaysia) Bhd began trading on the ACE Market on Oct 14 at 70 sen, a premium of 159% or 43 sen over its IPO price of 27 sen per share. The stock subsequently reached 73.5 sen, with turnover exceeding 84 million shares within the first 10 minutes of trading.
The listing followed an IPO in which subscriptions for the public allocation exceeded the available shares by more than 200 times. The allocation for selected investors was also fully taken up.
EcoSys raised RM39.34 million to fund expansion and operations. The IPO did not include an offer for sale by existing shareholders.
The Penang-based company, backed by Solarvest Holdings Bhd, primarily fabricates precision engineering components and sub-assembly modules for equipment used to manufacture semiconductors and solar panels. That business accounted for more than two-thirds of its annual revenue.
EcoSys has allocated RM17 million from the proceeds to purchase components for making abatement systems, which treat harmful and toxic gases. It plans to expand this business in response to rising semiconductor demand.
Another RM4.93 million is earmarked for machinery purchases and additional staff, while RM1.54 million will support expansion in India through recruitment and a new sales and service centre. The remaining proceeds are allocated to bank debt repayment, working capital and listing expenses.
