The automated manufacturing solutions provider has garnered significant interest from investors for its initial public offering (IPO), which has been oversubscribed by 110.17 times ahead of its listing on the ACE Market of Bursa Securities.
The Group’s listing entails a public issue of 150,000,000 new ordinary shares at an issue price of RM0.17 per share, representing approximately 26.0% of the enlarged share capital, with expected IPO proceeds of RM25.5 million.
In addition, there is also an offer for sale of 48,000,000 existing shares (Offer Shares) by way of private placement to selected investors.
ECA has received a total of 19,139 applications for 3,210,460,200 Shares with a value of approximately RM545.8 million for the 28,880,000 Shares allocated to the Malaysian public, representing an oversubscription rate of 110.17 times.
Whilst for the Bumiputera category, there were a total of 8,980 applications received for 1,020,099,500 Shares, translating into an oversubscription rate of 69.64 times.
As for the other Malaysian public category, 10,159 applications were received for 2,190,360,700 Shares, representing a higher oversubscription rate of 150.69 times.
The 14,400,000 Shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of ECA have been fully subscribed.
Meanwhile, the private placement of 106,720,000 Shares available to selected investors have also been completely placed out.
Based on information extracted from Bursa Malaysia website, the oversubscription rate of 110.17 times ranks ECA amongst the top 5 IPO issues with the highest oversubscription rates thus far in 2022.
“We are extremely heartened to have received such strong reception for our IPO. This reflects the public’s
confidence in the fundamentals and prospects of ECA. With the IPO funds in place, we are poised to implement our expansion plans and capitalise on the growth opportunities in the global automation manufacturing solution industry,” Mr. Chua Lye Hock, Executive Director-cum-Chief Operating Officer of ECA said,
“The combination of technical knowledge, engineering talent and state-of-the art machinery are crucial competitive edge for our Group. As such, ECA’s future plans center on increasing output and improving capability through acquisition of new machineries and recruitment of skilled technical personnel,” Chua added.
“We are seeing an increasing number of manufacturers undergo process transformation and/or shift towards greater automation of processes in business operations. This is primarily driven by awareness of Industry 4.0 technology, which is further fuelled by the COVID-19 pandemic, with the goal of increasing operational efficiency and lowering operational costs with minimal human intervention. With our automation track record and customisation ability, we stand to benefit from this paradigm shift.” Mr. Chua concluded.
ECA is scheduled to be listed on the ACE Market of Bursa Securities on Wednesday, 23 November 2022.
Upon listing, ECA will have a market capitalisation of approximately RM98.2 million based on issue price of RM0.17 per share and the enlarged share capital of 577,500,225 shares.
UOB Kay Hian Securities is the Principal Adviser, Sponsor, Placement Agent and Underwriter for the IPO exercise.
Notices of allotment will be posted to all successful applicants on or before 23 November 2022.
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