EcoSys (Malaysia) Berhad launched its prospectus for an initial public offering on the ACE Market of Bursa Malaysia Securities Berhad, aiming to raise RM39.34 million. The industrial solutions provider plans to list 145.70 million new ordinary shares at RM0.27 per share, representing approximately 25.5% of its enlarged issued share capital.

The company serves the pan-semiconductor industry through ultra-high purity fabrication and proprietary abatement systems. Proceeds will primarily fund the expansion of its abatement segment and strengthen its operational footprint in India, which contributed RM38.22 million to revenue in FY25.

IPO structure and proceeds allocation

The offering comprises a public issue of new shares with no offer for sale. Upon listing, EcoSys' total issued share capital will stand at 571.35 million shares. The gross proceeds of RM39.34 million are earmarked for specific strategic initiatives, with the largest portion directed toward business expansion rather than debt reduction or working capital.

Strategic focus on India and abatement systems

EcoSys identified India as a key growth market amid shifting global semiconductor manufacturing landscapes. The company plans to establish a dedicated sales and service centre in India, recruiting local personnel to enhance marketing presence and customer support. This move follows significant traction in the region, where EcoSys secured seven new customers for its abatement segment during the review period.

India accounted for 35.1% of the Group's revenue in FY25, totaling RM38.22 million. The planned investment of RM1.54 million for this expansion includes setting up infrastructure and hiring staff to capitalize on the emerging production hub status of the country.

What the numbers show

A clear strategic pivot toward high-growth segments is evident in the capital allocation plan. While debt repayment consumes 20.3% of the proceeds, nearly half of the total raise (43.2%) is allocated to expanding the abatement segment through component purchases. This prioritization suggests management views the abatement business as the primary driver of future revenue growth, especially given the recent acquisition of seven new Indian customers in this specific vertical. Furthermore, the relatively small allocation to working capital (6.0%) compared to capital expenditure items indicates a focus on asset-heavy capacity building over liquidity buffers.

Management commentary

Chan Chee Wei, Managing Director of EcoSys, stated that the listing marks a milestone for sustainable growth across the regional pan-semiconductor ecosystem. He noted that proceeds would support abatement expansion, UHP fabrication capabilities, and presence in India.

Bill Tan, Managing Director of M & A Equity Holdings Berhad, highlighted EcoSys' differentiated position combining established UHP fabrication with proprietary abatement systems. Tan remarked that the IPO positions the Group to handle higher business activity levels and strengthen international market service capabilities.

Kelvin Khoo, Group Chief Executive Officer of Eco Asia Capital Advisory Sdn Bhd, added that the initiatives would enhance the Group's ability to respond to evolving customer requirements. The listing is expected to raise corporate profile and provide greater financial flexibility for continued expansion.

M & A Securities Sdn Bhd serves as the Principal Adviser, Sponsor, Underwriter, and Placement Agent, while Eco Asia Capital Advisory Sdn Bhd acts as the Financial Adviser.