IPO to raise RM39.42 mil for the Group

Kuala Lumpur, 25 January 2010 – ECS ICT Berhad (“ECSB”, “佳杰科技”) aims to be the leading distribution hub for Information and Communications Technology (“ICT”) products in Malaysia and to further strengthen its RM1 billion revenue business after listing. 

ECSB today signed the underwriting agreement with its adviser, sole underwriter and co-placement agent, MIMB Investment Bank Berhad (“MIMB”), in conjunction with its forthcoming Initial Public Offering (“IPO”) on the Main Market of Bursa Malaysia Securities Berhad. 

The underwriting agreement was signed by ECSB’s Chairman, Dato’ Teo Chiang Quan (“张昌烱”) and Managing Director, Mr. Foo Sen Chin (“胡善正”) while MIMB was represented by Mr. Ng Chee Kiet (“黄子杰”), Director and Co-Head, Investment Banking, and Arvin Chia Yew Kim (“谢耀金”), Head, Equity Capital Markets. 

Speaking at the underwriting ceremony today, Dato’ Teo Qiang Quan said the Group had come a long way indeed, with its revenue base, product range, and market coverage growing by leaps and bounds.  

“We have successfully built ECSB to be a highly efficient enterprise, thriving in a very competitive industry with rapidly changing technology.

In addition, ECSB has implemented a fully integrated enterprise system to streamline the Group’s operations, from sales order, logistics and delivery to even payment collections. Ultimately, we aim to offer to our resellers a whole new experience of doing business with ease, speed and reliability.

Last but not the least, ECSB’s strong and long-term business relationship with our principals has made us their top partner for most of their products. ”

Dato’ Teo Qiang Quan (“张昌烱”)
Chairman, ECS ICT Berhad

ECSB distributes a very broad range of ICT products from notebooks, desktop computers, printers, and software to servers, communication infrastructure and network products.

At present, ECSB carries more than two thousand stock items from over 30 global ICT brands. These brands are the market leaders of the ICT industry, some of which include Hewlett Packard, IBM, Cisco, Microsoft, Apple, Sun Microsystems, Epson, Samsung and many more. 

ECSB’s head office at Kota Damansara in Petaling Jaya houses an advanced logistics centre, supported by five strategically located sales offices in Penang, Johor Bahru, Kuantan, Kota Kinabalu and Kuching. With this, ECSB’s market coverage extends from the Peninsular to East Malaysia. 

Over the years, ECSB has built a strong and efficient distribution infrastructure to serve a nationwide network of more than 2,500 resellers, which include retailers, system integrators and corporate dealers. 

In his speech, Mr. Ng Chee Kiet said: “We are proud to be associated with ECSB, one of the largest ICT distribution companies in the RM1 billion league. More significantly, ECSB has played a key role in providing the brick-and-mortar of the country’s ICT infrastructure. With the listing, we believe that ECSB is well poised to be the barometer of Malaysia’s ICT growth.” 

ECSB’s IPO entails a public issue of 27.0 million shares, and an offer-for-sale of up to 20.0 million shares at an IPO price of RM1.46 each. 

Of the 27.0 million shares for public issue, 10.0 million shares will be allocated for the Malaysian Public via balloting, 13.4 million shares for private placement to selected investors and 3.6 million shares for eligible directors, employees and business associates who have contributed to the success of ECSB Group. 

Barring unforeseen circumstances, ECSB aims to list by the first quarter of 2010. 

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