Eckem Holdings Berhad, an established specialty industrial chemical solutions provider which also undertakes the manufacturing and trading of rubber products, has officially commenced its initial public offering (IPO) exercise following the launch of its prospectus today. This pivotal corporate milestone paves the way for the Group’s upcoming listing on the ACE Market of Bursa Malaysia Securities Berhad.
The corporate exercise entails a public issue of 125.00 million new ordinary shares, representing 20.00% of the Group’s enlarged issued share capital of 625.00 million shares, in tandem with an offer for sale of 62.50 million existing shares, representing 10.00% of the enlarged issued share capital. Offered at an IPO price of RM0.12 per share, the public issue is structured to raise gross proceeds amounting to RM15.00 million.
The Group has outlined a meticulous capital allocation strategy for the utilization of the IPO proceeds. A majority share of RM6.00 million will be deployed for the construction of a new corporate office, warehouse, and laboratory facility to substantially fortify the Group’s operational infrastructure. To enhance downstream manufacturing capabilities, RM2.00 million will be allocated to expand a new production line dedicated to the rubber products segment. The remaining capital will be utilized to optimize the Group’s balance sheet, with RM1.45 million allocated for the repayment of bank borrowings, RM1.75 million dedicated to working capital requirements to sustain ongoing business operations, and RM3.80 million designated to defray listing expenses.
Commenting on the prospectus launch, Mr. Tan Khai Jeik (Jack Tan), Executive Director of Eckem Holdings Berhad, stated that the event signifies a defining moment in the Group’s corporate evolution. He emphasized that over the years, the company has cultivated robust relationships with industrial clientele by ensuring a reliable supply chain, coupled with application formulation support and advanced technical expertise. He added that the capital injection from the listing will directly upgrade their infrastructure and technical proficiency, thereby elevating their capacity to support the rigorous application demands of Malaysia’s wider manufacturing sector.
Affirming the financial viability of the listing, Datuk Bill Tan, Managing Director of M & A Securities Sdn Bhd, noted that Eckem Holdings has successfully carved out a resilient market presence within the specialty industrial chemicals domain. He attributed this success to the Group’s proven capability in delivering highly customized chemical solutions and maintaining exceptional customer retention rates. He added that as Malaysia’s macroeconomic industrial and manufacturing landscape continues to expand, the Group remains strategically positioned to capture future growth opportunities and deliver long-term stakeholder value post-listing.
Eckem Holdings currently commands a highly diversified industrial customer base comprising downstream manufacturers, compounders, and resellers. While the Group maintains a diversified geographical footprint spanning international markets such as China, Singapore, the United Kingdom, and the United States, its primary revenue engine remains firmly anchored in its home market. Malaysian operations accounted for approximately 94% of the Group’s total revenue for the financial year ended 2025.