EcoSys public IPO tranche oversubscribed 206.70 times
The industrial solutions provider priced its IPO at 27 sen per share to raise RM39.34 million, with RM17 million earmarked for its abatement business.
EcoSys (Malaysia) Bhd said applications for its public IPO tranche reached 5.93 billion shares, leaving the offer oversubscribed by 206.70 times. The company is scheduled to join Bursa Malaysia’s ACE Market on Oct 14.
The Solarvest Holdings Bhd-backed company primarily fabricates precision engineering components and sub-assembly modules for equipment used in semiconductor and solar panel manufacturing. Managing director Chan Chee Wei said the IPO funding would support its proprietary abatement business, ultra-high purity (UHP) fabrication and operations, and expansion in India.
EcoSys plans to allocate RM17 million for components used to manufacture abatement systems and to expand that business. These systems treat harmful and toxic gases. It also plans to put RM8 million towards repaying bank borrowings and RM5.5 million towards listing expenses.
Other planned allocations comprise RM4.93 million for machinery purchases and team expansion, RM2.36 million for working capital and RM1.54 million for a sales and service centre in India.
The company received 31,734 applications against a public allocation of 28.57 million new shares. The Bumiputera segment drew 12,109 applications covering 1.97 billion shares and was oversubscribed by 136.77 times. For the other public segment, 19,625 applications sought 3.97 billion shares, producing an oversubscription rate of 276.63 times.
EcoSys said subscriptions were complete for the 11.43 million shares offered to eligible persons. Investors approved by the Ministry of Investment, Trade and Industry (Miti) took up the entire Bumiputera placement of 71.42 million shares, while selected investors fully subscribed for another 34.28 million shares.
Successful applicants will be sent allotment notices by Oct 8.
