Solutions provider ECA makes strong debut on ACE mart
KUCHING: Automated manufacturing solutions provider ECA Integrated Solution Bhd (ECA) has successfully debuted on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities), opening at 65 sen – a premium of 282.4 per cent over the issue price of 17 sen, with an opening volume of 10.04 million shares.
The stock is categorised under the Technology sector and carries the stock name of ECA, with a stock code of 0267.
The Penang-based tech company raised a total of RM25.5 million from its initial public offering (IPO) exercise.
The group has allocated RM7.7 million (30.2 per cent) for acquisition of machineries and RM14 million (54.9 per cent) for working capital.
A further RM2.8 million (11 per cent) and RM1 million (3.9 per cent) have been earmarked for the estimated listing expenses and repayment of bank borrowings, respectively.
“Our listing marks a significant milestone in our corporate history,” ECA major shareholder Chua Lye Hock, who is also the executive director-cum-chief operating officer said.
“And are certainly very pleased with the strong opening price. I believe this is a reflection of investors’ confidence in our business and future prospects.
“In return, we will work hard to elevate our Group to the next level of growth.
“With the RM25.5 million IPO proceeds in place, we will expand our output and enhance our capability, as well as offer smart factory solutions.
“To recap, we have allocated RM7.7 million for acquisition of machineries and another RM14 million for working capital in preparation to undertake more jobs.
“The balance RM3.8 million proceeds will be used to repay bank borrowings and defray listing expenses.
“Offering smart factory solutions is on the card too. This is a natural progression for us as we are already providing smart manufacturing solutions since October 2020.
“The former involves greater methodological planning as well as design and development efforts to integrate and automate both the manufacturing and non-manufacturing processes of our customers’ manufacturing facility using IoT technology.
“We have received enquiries from a key customer on this and are currently working on the conceptualisation and design of smart factory solutions for them.”
UOB Kay Hian Securities (M) Sdn Bhd (UOB Kay Hian Securities) is the principal adviser, sponsor, placement agent and underwriter for the IPO exercise.