NationGate inks underwriting agreement for ACE Market IPO

KUALA LUMPUR, Nov 11 (Bernama) -- NationGate Holdings Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its listing on the ACE Market of Bursa Malaysia by the first quarter of 2023.

In a statement today, the electronics manufacturing services (EMS) provider said the initial public offering (IPO) comprises a public issue of 435.5 million new shares and an offer for the sale of 290.4 million existing shares.

It said that of the 435.5 million new shares, 207.4 million new shares will be made available to the Malaysian public, the company’s eligible directors and employees, as well as persons who have contributed to the company’s success. 

“The remaining 228.1 million new shares will be placed out to selected investors,” NationGate said.

As for the offer for sale portion, NationGate said all 290.4 million shares will be allocated by way of a private placement to selected investors and Bumiputera investors approved by the Ministry of International Trade and Industry.

Managing director Ooi Eng Leong said the listing would enable the company to tap into the equity capital market to raise funds for working capital requirements such as to purchase raw materials, consumables and electronic components consumed for the company’s EMS activities, in tandem with the expected growth in its EMS business activities.

“Part of the proceeds will also be used to acquire new machinery and equipment to expand our surface mount technology assembly capacity, repay bank borrowings and defray estimated listing expenses for the IPO,” he said.

NationGate has grown organically in the past 12 years since its inception and has expanded its EMS services into the semiconductor industry in 2020, added Ooi.

-- BERNAMA