Palm oil mills builder Econscience seeks ACE Market listing

Palm oil mills builder Econscience seeks ACE Market listing
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KUALA LUMPUR (Sept 10): Econscience International Bhd, which specialises in the construction of palm oil mills, is seeking a listing on the ACE Market of Bursa Malaysia.

According to the group's draft prospectus posted on the Securities Commission Malaysia website, the proposed initial public offering (IPO) of 112.17 million shares will comprise a public issue of 82.17 million new shares and an offer for sale of 30 million existing shares.

A total of 17 million shares will be made available to the Malaysian public, while 6.8 million shares will be allocated to the group’s eligible directors and employees.

Meanwhile, 42.5 million shares will be issued by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, and another 45.87 million shares to selected investors.

The price of the IPO shares has yet to be fixed.

Econscience International described itself as a one-stop solution provider for the construction of palm oil mills and supporting facilities and fabrication of equipment.

“Our core activities are in the construction of plants, which are mainly palm oil mills and facilities, supported by our in-house fabrication of equipment. Other complementary activities include supply of materials and equipment, spare parts and provision of maintenance services,” the group said in the draft prospectus.

Econscience International plans to expand the supply of environmental-related equipment by hiring new sales and marketing staff with relevant experience, and increasing marketing activities.

As part of its business plan, the group also intends to establish a new fabrication facility and office located at Balikpapan in Indonesia’s East Kalimantan province.

Econscience International’s profit after tax for the financial year ended Dec 31, 2020 fell 47.76% to RM6.5 million from RM12.48 million a year ago.

The group intends to distribute a dividend of at least 20% of its annual profit after tax attributable to its shareholders.

S Kanagaraju