ACE Market-bound ECA inks IPO underwriting agreement with UOB Kay Hian
KUCHING: Automated manufacturing solution provider, ECA Integrated Solution Bhd (ECA) has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd (UOB Kay Hian) in conjunction with its forthcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).
ECA Integrated’s IPO exercise encompasses a public issuance of 150 million new shares, representing 26 per cent of its enlarged share capital, as well as an offer for sale of 48 million existing shares, representing 8.3 per cent of the enlarged shares by way of private placement to selected investors.
Out of the 150 million new shares, 28.9 million shares will be made available to the Malaysian public via balloting; 14.4 million shares to its eligible directors, employees, and persons who have contributed to the success of the group; while the remaining 106.7 million shares are reserved for selected investors by way of private placement.
ECA, through its whollyowned subsidiary, is principally engaged in the provision of integrated production systems and standalone automated equipment.
It also provides after sales services for technical support services and spare parts. The Group’s clientele consists of global multinational manufacturers from various industries such as semiconductor products; electric vehicle and automotive components; solar system components, 5G telecommunication equipment components; and digital display tags, to name a few.
More than half of its revenue for the financial year ended October 31, 2021 was derived from overseas, including Eastern and Western Europe, China, Singapore, Vietnam, Philippines, as well as the United States.
ECA executive director cum chief executive officer, Ooi Chin Siew said, “We are delighted to sign this Underwriting Agreement with UOBKH, which takes us a step closer to our upcoming listing on the ACE Market of Bursa Securities.
“By tapping into the equity capital market, we can expedite our growth as the fresh funds will endow us with greater agility in our expansion plans to capitalise on prospects ahead.”
“It is indeed exciting and interesting times for us at ECA. We see many opportunities in the market, both locally and overseas, given the numerous catalysts pushing towards accelerated adoption pace for manufacturing automation.
“Large manufacturers globally are shifting towards smart factories for greater efficiency and productivity while reducing reliance on manual labour.
“In addition, there is the upsurge in outsourcing and relocation of manufacturing activities to Southeast Asia and Eastern Europe.”
OOi highlighted ECA’s strength to provide both integrated production systems and standalone automated equipment for its clients.
“Our technical capabilities start from design to development, fabrication, software programming, assembly, configuration, integration, testing and commissioning.
“Looking ahead, we shall allocate the bulk of our IPO proceeds to scale up our capability and capacity through investing in new high-speed machineries, as well as boost our working capital to support existing and future growth,” Ooi concluded.