KUALA LUMPUR: Ecoscience International Bhd (EIB) today signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) for its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia.
EIB managing director Wong Choi Ong said the signing of the underwriting agreement with HLIB is a leap forward in the company's journey to becoming a listed entity.
"Apart from the lifted stature and widened brand exposure, the IPO exercise is set to springboard EIB into an exciting phase of business expansion," he said in a statement today.
EIB's IPO of 112.17 million ordinary shares, representing 33.0 per cent of the enlarged issued share capital upon listing, comprises a public issue of 82.17 million new shares and an offer for sale of 30.00 million existing shares.
HLIB is the principal adviser, sponsor, underwriter, and placement agent for EIB's IPO exercise.
HLIB will underwrite 23.80 million shares consisting of 17.00 million shares made available to the public via balloting and 6.80 million shares allocated to eligible directors, employees, and persons who have contributed to EIB's success and its subsidiaries.
Meanwhile, 45.87 million shares and 42.50 million shares are for application through a private placement to selected investors and identified Bumiputera investors approved by the Ministry of International Trade and Industry (MITI), respectively.
"We intend to strengthen our operations in Indonesia, one of our three key geographical markets, and Gabon and Malaysia.
"With Indonesia being the largest palm oil producer globally, we believe there are plenty of growth opportunities to be found there.
"In addition to that, we are also expanding our environmental and energy efficiency business which involves the leasing of non-chemical water treatment equipment for use in palm oil and other industries.
"We see this as a great value add to our already comprehensive service offerings," Wong said.
EIB is a one-stop solution provider and turnkey contractor to construct plants and facilities for palm oil mills and plantations with in-house fabrication capabilities of palm oil milling equipment.
To date, the company has an established track record of completing the construction of palm oil mills, palm oil refineries, biodiesel plants, biomass plants, biogas plants, and upgraded existing palm oil mills.
Additionally, the company has also built supporting facilities for the palm oil mills encompassing workers' quarters, laboratories, offices, and schools, to name a few.
Its clientele includes multinational corporations and large resources companies such as Olam Group Ltd and Kuala Lumpur Kepong Bhd.
EIB's wholly-owned subsidiary, Ecoscience Manufacturing & Engineering Sdn Bhd, is a Grade 7 contractor registered with the Construction Industry Development Board (CIDB).
EIB is scheduled to be listed by the third quarter of 2022.
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