Solarvest-backed EcoSys aims to raise RM39.3m from ACE Market IPO

Penang-based semiconductor services firm EcoSys (Malaysia) Bhd is set to raise RM39.34 million through its IPO on Bursa Malaysia's ACE Market, with each share priced at 27 sen. The IPO features entirely new shares, without an offer for sale, leaving existing shareholders untouched. Solarvest Holdings Bhd is the backer of EcoSys.

The company primarily produces precision engineering components and sub-assembly modules for semiconductor and solar panel manufacturing equipment, which accounts for more than two-thirds of its annual revenue. EcoSys intends to allocate RM17 million from the IPO funds to acquire components for manufacturing abatement systems, which are critical equipment used to treat harmful and toxic gases.

The demand for these systems is expected to rise due to the growing semiconductor industry and the need for compliance with environmental regulations. EcoSys also plans to spend RM4.93 million on machinery acquisition, workforce expansion, and RM1.54 million on expanding its operations in India, including setting up a new sales and service centre and conducting regional recruitment.

The remaining funds will be used for repaying loans, managing working capital, and covering listing expenses. Upon listing on Oct 14, EcoSys is projected to have a market capitalization of RM154 million, based on its issue price and a valuation of about 14 times its trailing earnings. The company reported a net profit of RM11.20 million on RM108.94 million in revenue during the fiscal year 2025.

The public offer closes on Sept 29, with M&A Securities as the principal adviser, sponsor, underwriter, and placement agent, while Eco Asia Capital Advisory Sdn Bhd acts as the financial adviser.