KUALA LUMPUR (Aug 25): Total door system solution provider Econframe Bhd is set to debut on the ACE Market of Bursa Malaysia in the fourth quarter of this year.

The company today signed an underwriting agreement in conjunction with the initial public offering (IPO) with M&A Securities Sdn Bhd, which is also the principal adviser, sponsor and placement agent for the exercise.

The IPO entails a public issue of 65 million new shares and an offer for sale of 32.5 million existing shares, Econframe said in a statement.

Of the 65 million new shares, M&A Securities will underwrite a total of 19.5 million shares made available for the Malaysian public and the group’s eligible directors and employees.

A total of 13 million of the public issue shares will be offered via private placement to selected investors, while the remaining 32.5 million new shares will be placed out to Bumiputera investors approved by the Ministry of International Trade and Industry.

The offer for sale of 32.5 million existing shares, on the other hand, will be by way of private placement to selected investors, the group said.

Established in 2001, Econframe is a total door systems solution provider, complete with metal door frames, fire resistant door sets, wooden and metal doors, as well as ironmongery such as locksets and hinges.

“The group’s products are supplied on project basis to a diversified portfolio of property developments including residential, commercial, mixed and industrial developments,” the group said.

Some of Econframe’s notable customers include Aset Kayamas, Eco World, Gamuda, IJM Land, IOI Properties, LBS Bina, Mah Sing, Matrix Concepts, Sime Darby and S P Setia.

“We are excited to embark on our next phase of growth and the signing of the underwriting agreement brings us one step closer in marking the beginning of a new phase of business expansion for Econframe,” said Econframe managing director Lim Chin Horng.

“The drive for this listing exercise is to strengthen our brands presence, stature and corporate profile, entrench our market position as a total door systems solution provider,as well as funding our future business plans,” Lim added.

He said proceeds raised from the IPO will be mainly used to enhance Econframe’s manufacturing capacity and improve its efficiency in the manufacturing process.

“In executing our expansion plan, we aim to acquire land and construct a new factory,” said Lim, adding that Econframe also intends to automate some of its manufacturing processes to increase overall productivity and ensure consistency of its product quality.

Lim said the company also plans to venture into the production of wooden doors by leveraging on its experience and capabilities in making fire resistant doors.

(Editing by S Kanagaraju)