Muar-based furniture specialist, Ecomate Holdings Bhd entered into an underwriting agreement with M&A Securities Sdn. Bhd. in conjunction with the initial public offering (IPO) of Ecomate on the ACE Market of Bursa Malaysia Securities Bhd.
Ecomate’s IPO exercise entails a public issue of 49 million new shares and an offer for the sale of 30 million existing shares by way of the private placement to selected investors. Of the total 49 million new shares, which represents approximately 14% of the group’s enlarged total number of shares, 17.5 million will be allocated to the Malaysian public via balloting, 8.75 million shares to eligible Directors, employees as well as persons who have contributed to the success of the group (Pink Form Allocations) while the remaining 22.75 million shares will be offered via private placement to selected investors.
Under the agreement, M&A Securities will underwrite 26.25 million of the 49 million new shares, comprising portions to be made available for the Malaysian Public and Pink Form Allocations.
Managing Director of Ecomate, Mr Jason Koh Jian Hui says, “The signing of the underwriting agreement has brought us one step closer to become a public listed entity on Bursa Securities.”
“The adoption of work-from-home policies as well as the trade tensions between USA and China have been the key growth drivers to the local furniture industries. The shift in consumer buying patterns, from physical shops to online, also accelerated the distribution of our home furniture products to e-commerce sellers. This trend augurs well for Ecomate as we specialise in ready-to-assemble furniture products, which are well-suited for the e-commerce platforms,” says Jason Koh, Managing Director of Ecomate.
“As an export-oriented furniture manufacturer, we view IPO as an avenue to enhance our corporate stature and brand recognition, as well as fortify our position in the international markets. Furthermore, it provides a channel for us to tap into the equity capital market for future fundraising.”
