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HomeOther CountriesMalaysiaNationGate to raise RM165mil from 'biggest Ace Market listing' - Free Malaysia...

NationGate to raise RM165mil from 'biggest Ace Market listing' – Free Malaysia Today

PETALING JAYA: NationGate Holdings Bhd aims to raise RM165.5 million from its listing exercise on Bursa Malaysia’s ACE Market slated for Jan 12 next year.
At an issue price of 38 sen per share and an enlarged share capital of 2.1 billion shares, the company is expected to have a market capitalisation of RM788.1 million upon listing.
The electronics manufacturing services (EMS) provider said this will make it the “largest listing on the ACE Market of Bursa Securities”.
Of the total proceeds, the company plans to use RM48.4 million (29.2%) for its working capital requirements to purchase raw materials, consumables and electronic components, in tandem with the expected growth in its EMS activities.
A sum of RM5.9 million (3.6%) will be used to purchase additional machinery and equipment to expand its “surface mount technology” (SMT) assembly capacity and enhance its production efficiency.
Additionally, RM105.5 million (63.8%) and RM5.7 million (3.4%) will be used for the repayment of bank borrowings and to defray the estimated listing expenses, respectively.
Managing director Ooi Eng Leong said in line with the company’s strategy to expand its EMS business, it will add four SMT assembly lines for its printed circuit board assembly services.
“These new machinery and equipment are also expected to enhance our EMS efficiencies. As of Nov 14, 2022, we have a monthly production capacity for SMT services of up to 1.26 billion mounting points per month.
“Upon the completion of the expansion of our SMT assembly lines within 36 months, our monthly production capacity is expected to increase by up to 38.4 million mounting points to a maximum of 1.3 billion mounting points per month,” he said in a virtual press conference in conjunction with the launch of the prospectus today.
Its corporate services director Tay Seng Chew said the EMS market is still growing strongly despite the rising interest rates and an anticipated global recession.
“We are primarily in infrastructure networking and telecommunications. We are also in the industrial instrumentation segment, data computer computing segment and automotive segment.
“So, these segments are expected to give us good growth going into 2023 and over the next few years in the mid-term,” he added.
NationGate’s initial public offering (IPO) is open for subscription today until Dec 30. It comprises a public issue of 435.5 million new shares and an offer for the sale of 290.4 million existing shares.
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