KUALA LUMPUR (Aug 12): Ecomate Holdings Bhd has proposed to undertake a special issue of 50 million new shares to Bumiputera investors, which is estimated to raise some RM27 million based on an indicative issue price of 54 sen per share.

The special issue will also enable the ready-to-assemble furniture products maker to comply with the Bumiputera equity condition to be listed on the ACE Market.

Ecomate was listed on ACE Market on Nov 8, 2021 with the provision that it allocates at least 12.5% of its enlarged share base to Bumiputera investors.

The indicative issue price represents a discount of 8.4% to the five-day volume weighted average market price to Aug 11 of 58.93 sen, Ecomate said in its stock exchange filing on Friday.

Ecomate plans to utilise RM16.3 million of the proceeds for working capital, RM10 million to build an office and showroom, while the remaining RM700,000 will be used to cover estimated expenses in relation to this corporate exercise.

Save for the group's RM16.17 million initial public offering (IPO), Ecomate said it has not undertaken any equity fundraising exercise in the past 12 months.

M&A Securities has been appointed as the principal adviser and placement agent for this corporate exercise, which is expected to be completed by the fourth quarter of this year.

Shares of Ecomate, whose IPO issue price was 33 sen, gained two sen or 3.39% to close at 61 sen on Friday, giving it a market capitalisation of RM213.5 million.