PETALING JAYA: ACE Market-bound Ecoscience International Bhd has signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) in conjunction with its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.

       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.

       In a statement yesterday, the company said its IPO of 112.17 million ordinary shares, representing 33% 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.

       HLIB will underwrite 23.80 million shares consisting of 17 million shares made available to the Malaysian public via balloting and 6.80 million shares allocated to eligible directors, employees, and persons who have contributed to the success of Ecoscience and its subsidiaries.Meanwhile, the balance of 45.87 million shares and 42.50 million shares are for application by way of private placement to selected investors and identified bumiputra investors approved by the International Trade and Industry Ministry, respectively.

       Ecoscience managing director Wong Choi Ong said the signing of the underwriting agreement with HLIB 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.”