Automated manufacturing solution provider has successfully launched its prospectus today in conjunction with its initial public offering (IPO) exercise on the ACE Market of Bursa Securities.
ECA Integrated, via its wholly-owned subsidiary, is principally engaged in the provision of integrated production systems (IPS) and standalone automated equipment to help automate manufacturing processes of its clients. The Group also provides after sales services for technical support services and spare parts. Its customer base comprises
global multinational manufacturers from various industries including semiconductor products; electric vehicles (EV) and automotive components; solar system components, 5G telecommunication equipment components; and digital display tags.
Besides Malaysia, the Group has clientele overseas in Europe, Asia Pacific, as well as the United States.
“Steered by digital transformation in the manufacturing industry, manufacturers worldwide are accelerating the shift towards automation to attain higher production output while simultaneously reduce reliance on manual manpower, which taken together, will greatly enhance productivity. In addition, the emergence of new factories and outsourcing plans of multinational manufacturers in Southeast Asia and Eastern Europe will further boost the demand for automated manufacturing solutions as well,” Mr. Chua Lye Hock, the Executive Director-cum-Chief Operating Officer said.
“As an established solution provider in manufacturing process automation, we stand to benefit from this paradigm shift. Between my fellow Executive Directors and heads of departments, we collectively have some 100 years of experience in this field, which is born out of our deep passion for machine design and engineering. With the proven track record of our customized automation solution, ECA Integrated has today a clientele comprising foreign multinational corporations that are listed, amongst others, on New Stock Exchange, NASDAQ and Frankfurt Stock Exchange. Post listing, beyond expanding our capability and capacity, we are looking into offering smart factory solutions, for which we have already received enquiries from a key customer,” he added.
From the IPO, ECA Integrated aims to raise gross proceeds of RM25.5 million (IPO proceeds), which will predominantly be employed to enhance its capacity and capabilities to capture the fast-growing demand for automated manufacturing solutions.
Of the total proceeds of RM25.5 million from the IPO, where RM7.7 million is allocated for the acquisition of machineries to augment its technical capabilities and to cater for higher production output. These advanced machines enable greater customisability of its solutions to better suit customer needs and to handle larger volume of complex fabrication works.
Another RM14.0 million is earmarked for working capital in preparation to take on more jobs. The enhanced operational and manpower resources will be a cornerstone for the Group to better capitalise the existing and future growth opportunities. The remaining RM3.8 million of IPO proceeds will be used for repayment of bank borrowings and
listing expenses.
“Having worked with the team from ECA Integrated over the past one year, we can really feel their passion for manufacturing automation. Their growth journey has been absolutely stellar too. It is not often that you come across a company which recorded a compounded annual growth rate or CAGR of 144% in profit after tax over a 3-year period. We are excited about the Group’s future plans and have faith the team has the competency to realize them. We look forward to continue working with ECA Integrated post-listing in their next chapter of growth,” Executive Director of UOB Kay Hian, Mr. Cheng Kim Chuan said.
In terms of financial performance, ECA Integrated’s revenue has grown at a 2-year compounded annual growth rate (CAGR) of 63.5% to RM20.5 million in the financial year ended 31 October 2021 (FYE2021). Meanwhile, the Group’s profit after tax, expanded at a greater CAGR of 144% from RM1.37 million in FYE2019 to a historic high of RM8.2 million in FYE2021.
Moving forward, the Group has set a target to distribute up to 20% of its annual profit after tax attributable to the shareholders of the Group.
This IPO exercise encompasses a public issuance of 150.0 million new shares, representing 26.0% of its enlarged share capital, as well as an offer for sale of 48.0 million existing shares, representing 8.3% of the enlarged shares by way of private placement to selected investors.
Out of the 150.0 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 (Pink Form Allocations); while the remaining 106.7 million shares are reserved for selected investors by way of private placement.
Based on an issue price of RM0.17 per share and an enlarged share capital of 577.5 million shares, ECA Integrated will have a market capitalisation of RM98.2 million upon listing.
Pursuant to the prospectus launch, applications for the Public Issue are open today and will close on 11 November 2022 at 5.00 p.m.
ECA Integrated is scheduled to be listed on the ACE Market of Bursa Securities on 23 November 2022.
The Principal Adviser, Sponsor, Sole Placement Agent, and Sole Underwriter for the IPO exercise is UOB Kay Hian.
