KUALA LUMPUR: Automated manufacturing solutions provider ECA Integrated Solution Bhd (ECA) made a strong debut on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities) at 65 sen — a 282.4% premium from its initial public offering (IPO) price of 17 sen.
At the opening bell, the Penang-based tech company saw an opening volume of 10.04 million shares changing hands.
ECA executive director and chief operating officer Chua Lye Hock said on Nov 23’s listing marked a significant milestone in the company’s corporate history and was pleased with the strong opening price.
“I believe this is a reflection of investors’ confidence in our business and future prospects. In return, we will work hard to elevate our group to the next level of growth.
“We will expand our output and enhance our capability, as well as offer smart factory solutions,” he said in a statement on Nov 23.
Chua said offering smart factory solutions was a natural progression for the company as they are already providing smart manufacturing solutions since October 2020.
“The former involves greater methodological planning as well as design and development efforts to integrate and automate both the manufacturing and non-manufacturing processes of our customers’ manufacturing facility using the Internet of Things technology.
“We have received enquiries from a key customer on this and are currently working on the conceptualisation and design of smart factory solutions for them,” he added.
Of the RM25.5 million raised from the IPO exercise, RM7.7 million is allocated for the acquisition of machinery and RM14 million for working capital, while RM2.8 million and RM1 million have been earmarked to defray the estimated listing expenses and repayment of bank borrowings, respectively.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, placement agent and underwriter for the IPO exercise.
ECA closed 58.5 sen higher to 75.5 sen on a volume of 144.45 million shares. – Bernama