KUALA LUMPUR: Integrated palm oil milling services provider Ecoscience International Bhd has today entered into an underwriting agreement with Hong Leong Investment Bank Bhd (Hong Leong IB) in conjunction with its proposed initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia.

       Ecoscience managing director Wong Choi Ong said the signing of the underwriting agreement with Hong Leong IB is 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,” he said in a statement today.

       He said the company is also expanding environmental and energy efficiency business which involves the leasing of non-chemical water treatment equipment for use in palm oil and other industries.

       "We see this as a great value add to our already comprehensive service offerings,” he said.

       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.

       Ecoscience’s IPO of 112.17 million ordinary shares, representing 33 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 million existing shares.

       It said Hong Leong IB will underwrite 23.8 million shares consisting of 17 million shares made available to the Malaysian 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, Ecoscience 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.

       Barring any unforeseen circumstances, Ecoscience is scheduled to be listed by the third quarter of 2022.

       Hong Leong IB is the principal adviser, sponsor, underwriter and placement agent for Ecoscience’s IPO exercise. - Bernama