Ecoscience International Bhd (EIB) has inked an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) for its proposed initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia.
According to a statement from the integrated palm oil milling services provider, 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.
EIB’s managing director Wong Choi Ong commented on the signing of the underwriting agreement with HLIB being a significant leap forward in the company's journey to becoming a listed entity. "Apart from the lifted stature and widened brand exposure, the proposed IPO exercise is set to springboard the group into an exciting phase of business expansion.”
“We intend to strengthen our operations in Indonesia, which is one of our three key geographical markets along with Gabon and Malaysia. With Indonesia being the largest palm oil producer in the world, we believe there are plenty of growth opportunities to be found there.”
HLIB will underwrite 23.8 million shares consisting of 17 million shares made available to the public via balloting and 6.8 million shares allocated to eligible directors, employees and persons who have contributed to the success of Ecoscience and its subsidiaries.
Meanwhile, EIB said 45.87 million shares are for application by way of private placement to selected investors and the remaining 42.5 million shares are for identified Bumiputera investors approved by the Ministry of International Trade and Industry.
“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,” added Wong.
Ecoscience is a one-stop solution provider and turnkey contractor for the construction of 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.
With HLIB as the principal adviser, sponsor, underwriter and placement agent for its IPO exercise, Ecoscience is scheduled to be listed by the third quarter of 2022.