KUALA LUMPUR (Nov 23): Automated manufacturing solution provider ECA Integrated Solution Bhd made a strong debut on the ACE Market of Bursa Malaysia Securities Bhd at 65 sen ⁠— a 282.4% premium to its initial public offering (IPO) price of 17 sen.

At the opening bell, the Penang-based tech company saw a trading volume of 10.04 million shares.

ECA executive director and chief operating officer Chua Lye Hock said the listing marks a significant milestone in the company’s corporate history, and he was pleased with the strong opening price.

“I believe this is a reflection of investors’ confidence in our business and future prospects. In return, we will work hard to elevate our group to the next level of growth.

“We will expand our output and enhance our capability, as well as offer smart factory solutions,” he said in a statement on Wednesday (Nov 23).

Chua said offering smart factory solutions is a natural progression for the company, as it has already been providing smart manufacturing solutions since October 2020.

“The former involves greater methodological planning as well as design and development efforts to integrate and automate both the manufacturing and non-manufacturing processes of our customers’ manufacturing facility using Internet-of-Things technology.

“We have received enquiries from a key customer on this, and are currently working on the conceptualisation and design of smart factory solutions for them,” he added.

Of the RM25.5 million raised from the IPO exercise, RM7.7 million is allocated for the acquisition of machinery and RM14.0 million for working capital, while RM2.8 million has been earmarked to defray estimated listing expenses, and RM1.0 million for repayment of bank borrowings.

UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, placement agent and underwriter for the IPO exercise.