PETALING JAYA: Ekonusa Bhd is eyeing a listing on the ACE Market of Bursa Malaysia.
The company is principally involved in the manufacturing of plastic products utilising extrusion blow moulding and injection moulding techniques.
In its draft prospectus exposure, the company said its initial public offering (IPO) will entail the public issue of 121 million new ordinary shares.
Mercury Securities Sdn Bhd is the sponsor for the company’s IPO.
The company said the proceeds from the IPO will be used for the construction of a new factory, purchase of extrusion blow moulding machines and working capital.
“In line with the construction of a new factory to expand our production capacity and warehousing floor space to meet the growing demand from existing and new customers as well as to reduce delivery lead time, we intend to purchase additional machines to support the initial production requirements.
“Based on our management’s past experience and estimation, we will require 10 automatic extrusion blow moulding machines and a labelling machine to be installed in the new factory as a start.”
The company added that it will gradually add other machinery and equipment (such as injection moulding machines to produce plastic pails, caps and/or lids in phases) as and when the need arises.
Ekonusa said plastic resin are the main components of raw materials used in its business operations and account for more than 70% of its total purchases.
“As crude oil and natural gas are the primary feedstocks for plastic resin, fluctuations in their global prices would have a material impact on plastic resin price.
“Plastic resin prices have generally moved in tandem with the crude oil price. For instance, the current ongoing conflict in the Middle East has caused a disruption to the supply chain which caused a sudden spike in the price of plastic resin globally.”