EcoSys Debuts on ACE at 27 Sen, 206.7x Oversubscribed

The EcoSys IPO was the second-most subscribed listing on ACE this year. Penang-based EcoSys (Malaysia) Bhd (KL:ECOSYS) debuted on Wednesday (Oct 14).

Selangor-based EGH International Bhd (KL:ECOGRP) followed on Friday (Oct 16). Both are worth monitoring for their growth and order books.

What Is the EcoSys IPO Price and How Much Did It Raise?

EcoSys offered 145.7 million new shares, or 25.5% of its enlarged share base, at 27 sen each. The RM39.3 million raise has no offer-for-sale component and values the company at RM154.3 million on listing.

The public portion drew 31,734 applications for 5.93 billion shares, an oversubscription of 206.7 times. Only SRKK AI Bhd (KL:SRKKAI), at 312.3 times, drew more demand this year.

What Does EcoSys Make and Who Built It?

EcoSys makes ultra-high-purity (UHP) precision components for semiconductor equipment. Its abatement systems treat hazardous gases released in semiconductor and solar panel manufacturing.

Managing director Chan Chee Wei and his wife, Voon Sin Choo, acquired EcoSys PLT in 2005. The group entered UHP in 2009 and bought Applied Materials Inc’s EcoSys abatement product line in 2011.

The abatement technology is backed by 48 patents, 36 trademarks and three wordmarks.

Which Segment Earns More, UHP or Abatement?

In FY2025, UHP contributed RM63 million, or 57.8% of group revenue. Abatement added RM46 million, or 42.2%.

Abatement earns a 29.9% gross margin, against 19.5% for UHP. Deliveries almost doubled to 194 units from 99 a year earlier.

RHB Research says “the UHP segment provides an established earnings base while abatement gives higher growth avenue.”

How Did EcoSys Revenue and Profit Recover?

Revenue fell to RM73.8 million in FY2023, then rebounded to RM88.8 million in FY2024 and RM108.9 million in FY2025. Adjusted net profit rose from about RM5 million to about RM8 million and RM11 million over the same period.

Kenanga Investment Bank blamed the FY2023 dip on fewer UHP orders, following bulk purchases the year before.

The first quarter of FY2026 was softer. Revenue fell 28.5% year on year, and net profit declined 48.6% to RM2.2 million, partly due to the expiry of its Pioneer Status tax incentive in November 2025.

Why Is India a Growth Engine for EcoSys?

Revenue from India jumped to RM38.2 million in FY2025 from RM6.3 million a year earlier. India made up 35.1% of group revenue, ahead of Singapore at 33.1% and Malaysia at 27.2%.

Kenanga calls it an “India solar buildout [that] opens a new abatement growth engine.” India targets at least 80gw of domestic ingot and wafer capacity by June 2028, from about 2gw now.

Kenanga forecasts abatement at 44% of group revenue in FY2026 and 45% in FY2027.

Where Will the EcoSys IPO Proceeds Go?

• 43.2% of the RM39.3 million buys key components and modules for abatement systems.
• RM4.9 million funds equipment and hiring, including an automated chemical cleaning and surface-treatment line that brings an outsourced process in-house.
• RM1.5 million supports Indian operations, with a sales and service centre planned by Q4 2026 and 11 hires.

EcoSys moved to a 24,613 sq ft factory in Simpang Ampat in October 2025. PublicInvest says this lifts annual abatement assembly capacity by about 49%.

The order book stood at RM94.3 million as at Aug 25, with RM63.4 million due in FY2026 and RM30.9 million in FY2027. RHB expects more than RM20 million of abatement orders alone in the second half of FY2026.

What Are the Main Risks in EcoSys Earnings?

• Lumpy abatement sales: PublicInvest says revenue is “lumpy, largely depending on customer demand.” Deliveries fell from 50 units to 35.
• Customer concentration: A small group of customers made up as much as 73.2% of FY2025 revenue, per PublicInvest. Kenanga puts the top five at 84% in 1QFY2026.
• Purchase orders only: Sales are made on purchase orders, not long-term agreements.

How Do Research Houses Value EcoSys Against Peers?

PublicInvest is the most conservative at 33 sen, based on about 12 times FY2027 earnings. TA Securities arrives at 45 sen on 17 times CY2027 earnings.

RHB Research applies 20 times FY2027 earnings for 52 sen. Kenanga is the most bullish at 54 sen, using a blended 18 times FY2027 PER. All four fair values sit above the 27 sen IPO price.

TA Securities forecasts core profit of RM13.1 million, RM15 million and RM18.1 million for FY2026 to FY2028. PublicInvest sees RM18.7 million by FY2028, a three-year CAGR of about 19%.

RHB projects a core earnings CAGR of about 17%. Kenanga forecasts RM12.7 million for FY2026 and RM17.1 million for FY2027.

TA Securities expects a pro forma net cash position of RM29.6 million, or 5.2 sen per share. Chan retains 52.2% after listing, Solarvest Holdings Bhd (KL:SLVEST) keeps 22.3%, and the free float is 25.5%.

What Did EGH International Offer at 16 Sen?

EGH International traces its history to ECO Interiors, incorporated in 2009. Managing director Datuk Weslie Lim Yuk Ming has led it since 2010.

The ACE listing offered 240 million new shares and 120 million existing shares at 16 sen, for a post-listing value of RM160 million. The public issue raises RM38.4 million for the company, while the offer for sale raises RM19.2 million for selling shareholder Datuk Doh Jee Ming, managing director of Lagenda Properties Bhd (KL:LAGENDA).

The public portion drew 3,101 applications for 131.33 million shares, a 2.63 times oversubscription.

Interior fit-out contributed RM172.2 million, or 92.1%, of FY2026 revenue (ended March 31, 2026). Furniture, fittings and building materials, including IPO World, added RM14.9 million, or 7.9%.

Revenue rose to RM187.1 million from RM161.6 million in FY2023. Net profit attributable to owners climbed to RM10.9 million from RM2.3 million, as gross margin widened to 20% from 9.2%.

RHB attributes the margin gain to “procurement-led value engineering.” Materials make up about 70% of project costs.

Unbilled orders total RM313.5 million across 18 projects as at Aug 31, about 1.7 times FY2026 revenue. RHB says the group has completed more than 200 projects, including the RM210.7 million Park Hyatt Hotel at Merdeka 118.

How to Apply for the Next ACE Market IPO via M+ Global

Both IPOs have already listed, so this process applies to future offers. Retail portions are balloted when oversubscribed.

Online applications need a direct CDS account in your own name. Only one application per IPO is allowed, as multiple applications are an offence under the Capital Markets and Services Act 2007.

Apply through the M+ Global app using Invitation Code UBZQ. For help, WhatsApp +60169059789. Read more in IPO Investing with M+ Global.

Disclaimer: This article is for information only and is not a recommendation to buy, sell or hold any shares. Do your own research and read the prospectus before making any decision.

Key Takeaways

• EcoSys listed on ACE at 27 sen, raising RM39.3 million and oversubscribed 206.7 times.
• Abatement carries a 29.9% gross margin and is the main growth engine, with India at 35.1% of FY2025 revenue.
• Customer concentration of up to 73.2% of FY2025 revenue is the key risk flagged by PublicInvest.
• Research house fair values range from 33 sen to 54 sen, against the 27 sen IPO price.

Frequently Asked Questions

What was the EcoSys IPO price?

The EcoSys IPO price was 27 sen per share on the ACE Market. It raised RM39.3 million from 145.7 million new shares, with no offer-for-sale component.

Was the EcoSys IPO oversubscribed?

Yes, the public portion was oversubscribed 206.7 times. It drew 31,734 applications for 5.93 billion shares, second only to SRKK AI Bhd at 312.3 times this year.

What is EcoSys’s fair value according to research houses?

Fair values range from 33 sen by PublicInvest to 54 sen by Kenanga. TA Securities gives 45 sen and RHB Research gives 52 sen.

Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.

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