by PRIYA VASU / graphic by MZUKRI MOHAMAD

ECOMATE Holdings Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) in the ACE Market of Bursa Malaysia.

In a statement today the company said the IPO exercise entails a public issue of 49.00 million new shares and an offer for sale of 30.00 million existing shares by way of private placement to selected investors.

Of the total 49.00 million new shares, which represents approximately 14.00% of the Group’s enlarged total number of shares, 17.50 million will be allocated to the Malaysian public via balloting, 8.75 million shares to eligible Directors, employees as well as persons who have contributed to the success of the Group while the remaining 22.75 million shares will be offered via private placement to selected investors.

Under the agreement, M&A Securities will underwrite 26.25 million of the 49.00 million new shares, comprising portions to be made available for the Malaysian Public and Pink Form Allocations.

“We remained steadfast on our growth prospects and continue to march forward to capitalise on the booming demand for furniture.

“The adoption of work-from-home policies as well as the trade tensions between the United State of America and China have been the key growth drivers to the local furniture industries,’ said Managing Director of Ecomate, Jason Koh Jian Hui.

He added the shift in consumer buying pattern, from physical shops to online, also accelerated the distribution of its home furniture products to e-commerce sellers. “This trend augurs well for Ecomate as we specialise in ready-to-assemble furniture products, which are well-suited for the e-commerce platforms,” he added.

Established since 2016, Ecomate is an export-oriented furniture producer based in Muar, Johor specialising in the production of ready-to-assemble home furniture for the local and export markets.

The company is slated to be listed on the ACE Market of Bursa Securities by November 2021.