Ace Market-bound ECA Integrated inks IPO underwriting deal with UOBKH

AUTOMATED manufacturing solution provider ECA Integrated Solution Bhd has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd (UOBKH) in conjunction with its forthcoming initial public offering (IPO) on Bursa Securities’ ACE Market. 

ECA Integrated’s IPO exercise encompasses a public issuance of 150 million new shares, representing 26% of its enlarged share capital, as well as an offer for sale of 48 million existing shares, representing 8.3% of enlarged shares by way of private placement to selected investors.   

Out of the 150 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) and the remaining 106.7 million shares are reserved for selected investors by way of private placement.  

ECA Integrated executive director cum CEO Ooi Chin Siew said the group is delighted to sign the underwriting agreement with UOBKH as it takes them one step closer to its upcoming listing on the ACE Market of Bursa Securities, slated for the fourth quarter of the year (Q4 2022). 

“By tapping into the equity capital market, we can expedite our growth as the fresh funds will endow us with greater agility in our expansion plans to capitalise on prospects ahead,” he added.  

Ooi said these are exciting and interesting times for ECA Integrated as there are many opportunities in the market, both locally and overseas, given the numerous catalysts pushing towards an accelerated adoption pace for manufacturing automation.  

He noted that large manufacturers globally are shifting towards smart factories for greater efficiency and productivity as they reduce reliance on manual labour, on the back of an upsurge in outsourcing and relocation of manufacturing activities to Southeast Asia and Eastern Europe.  

Back home, the Government has allocated funds to support small and medium enterprises (SMEs) in their technological transformation in line with the industry 4.0 national policy Industry4WRD. 

“The automated manufacturing solutions in Malaysia, according to an independent market research done by Providence Strategic Partners, is projected to grow at a compounded annual growth rate of 19.3% between 2022 and 2024,” Ooi added.  

“This is where ECA Integrated comes in to play a key role as it is our strength to provide both integrated production systems and standalone automated equipment for our clients; our technical capabilities start from design to development, fabrication, software programming, assembly, configuration, integration, testing and commissioning.”

Looking ahead, ECA Integrated will allocate the bulk of its IPO proceeds to scale up the group’s capability and capacity through investing in new high-speed machines, as well as boost its working capital to support existing and future growth. 

ECA Integrated is scheduled to be listed on the ACE Market of Bursa Securities by November 2022, with UOBKH as the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO exercise. 

ECA Integrated, through its wholly-owned subsidiaries, is principally engaged in the provision of integrated production systems and standalone automated equipment. It also provides after-sales services for technical support services and spare parts.   

The group’s clientele consists of global multinational manufacturers from various industries such as semiconductor products; electric vehicle and automotive components; solar system components; 5G telecommunication equipment components; and digital display tags. 

More than half of its revenue for the financial year ending Oct 31, 2021, came from overseas, including Eastern and Western Europe, China, Singapore, Vietnam, the Philippines and the US. 

UOBKH, on the other hand, is a Singapore-based global investment bank that engages in brokerage services, private wealth management, investment banking, investment management and financial research. – Sept 29, 2022 

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