Ecomate Holdings Berhad road to the KL Stock Exchange has been very encouraging with its initial public offering oversubscribed by 98.94 times ahead of listing on the ACE Market of Bursa Malaysia Securities Berhad.
The group is placing 49,000,000 new ordinary shares at an issue price of RM0.33 per share which represents 14.0% of its enlarged share capital, raising approximately RM16.17 million and an offer for sale up to 30,000,000 existing shares by way of private placement to selected investors.
However, the overwhelming response is rather humbling for Ecomate, which has received a total of 18,677 applications for 1,748,955,700 Shares with a value of RM577,155,381 from the Malaysian public for the 17,500,000 Shares, resulting in an oversubscription rate of 98.94 times.
- According to the group, the allocaiton has split fot bumiputera a total of 9,664 applications for 780,852,300 Shares which saw an oversubscription rate of 88.24 times; and public portion, a total of 9,013 applications for 968,103,400 Shares were rrepresenting an oversubscription rate of 109.64 times.
Managing Director of Ecomate, Mr. Jason Koh Jian Hui said, “We are very pleased with the excellent response we received for our IPO as it signifies the public confidence towards Ecomate’s strong business fundamentals and growth prospect. Indeed, this is an opportune time for us to enhance our footing in the international market and capitalise on the rising demand for ready-to-assemble (“RTA”) furniture.”
The proceed from IPO will be used as a war chest to accelerate its expansion plans and the aim to be the leading RTA furniture producer in the region.
Ecomate is slated to be listed on the ACE market of Bursa Securities on Monday, 8 November 2021. Upon listing, Ecomate will have a market capitalisation of RM115.50 million based on the issue price of RM0.33 and its enlarged share capital of 350,000,000 Shares.
