Integrated palm oil milling services provider, Ecoscience International Bhd entered into an underwriting agreement with Hong Leong Investment Bank Berhad (“Hong Leong IB”) in conjunction with its proposed initial public offering (“IPO”) and listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
Ecoscience’s IPO of 112.17 million ordinary shares, representing 33.0% of the enlarged issued share capital upon listing, comprises a public issue of 82.17 million new shares and an offer for sale of 30.00 million existing shares.
Hong Leong IB will underwrite 23.80 million shares consisting of 17.00 million shares made available to the Malaysian public via balloting and 6.80 million shares allocated to eligible directors, employees, and persons who have contributed to the success of Ecoscience and its subsidiaries (the “Group”) (“Eligible Persons”).
Meanwhile, the balance of 45.87 million shares and 42.50 million shares are for application by way of a private placement to selected investors and identified Bumiputera investors approved by the Ministry of International Trade and Industry (“MITI”), respectively.
Ecoscience is a one-stop solution provider and turnkey contractor for the construction of plants and facilities for palm oil mills and plantations with in-house fabrication capabilities of palm oil milling equipment.
To date, it has an established track record of completing construction of palm oil mills, palm oil refineries, biodiesel plants, biomass plants, and biogas plants, as well as upgraded existing palm oil mills.
Additionally, the Group has also built supporting facilities for the palm oil mills encompassing workers’ quarters, laboratories, offices, and schools, to name a few. Its clientele includes multinational corporations and large resources companies in the world such as the likes of Olam Group Limited and Kuala Lumpur Kepong Berhad.
Ecoscience’s wholly-owned subsidiary, Ecoscience Manufacturing & Engineering Sdn. Bhd. is a Grade 7 contractor registered with the Construction Industry Development Board (“CIDB”). Grade 7 is the highest grade in CIDB registration with no limit to tender value.
Managing Director of Ecoscience International Berhad, Mr. Wong Choi Ong(said, “The signing of the underwriting agreement with Hong Leong IB is a significant leap forward in our journey to becoming a listed entity.
Apart from the lifted stature and widened brand exposure, the proposed IPO exercise is set to springboard the Group into an exciting phase of business expansion.”
“We intend to strengthen our operations in Indonesia, which is one of our three key geographical markets along with Gabon and Malaysia. With Indonesia being the largest palm oil producer in the world, we believe there are plenty of growth opportunities to be found there. In addition to that, we are also expanding our environmental and energy efficiency business which involves the leasing of non-chemical water treatment equipment for use in palm oil and other industries. We see this as a great value add to our already comprehensive service offerings.”
Group Managing Director/Chief Executive Officer of Hong Leong Investment Bank Berhad, Ms. Lee Jim Leng said, “Hong Leong IB is honoured to take part in the IPO of Ecoscience. The Group plays an integral role in supporting the global palm oil value chain. In recent periods, demand for crude palm oil has been surging due to various market factors. On the back of the favourable industry trend, we are confident that the positive momentum will greatly benefit Ecoscience. Hence, we are looking forward to facilitating Ecoscience in capitalising the growth opportunity.”
Barring any unforeseen circumstances, Ecoscience is scheduled to be listed by the third quarter of 2022.
Hong Leong IB is the principal adviser, sponsor, underwriter, and placement agent for Ecoscience’s initial public offering exercise.
