KUCHING: Northeast Group Berhad (Northeast) has received approval from Bursa Malaysia Securities Berhad (Bursa Securities) to list on the ACE Market of Bursa Securities (Listing).
Pursuant to the listing, its statement stated that Northeast’s initial public offering (IPO) entails a public issue of 168,989,000 new shares and an offer for sale of 51,800,000 existing shares.
Of these 220,789,000 shares, it said that 37,000,000 shares will be made available to the Malaysian public and 29,600,000 shares will be made available for application by eligible directors, employees and business associates who have contributed to the success of the group.
“Another 61,689,000 shares will be made available by way of private placement to selected investors while the remaining balance of 92,500,000 shares will be made available by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia,” it said.
According to Northeast’s managing director Ng Chay Chin, the group is principally engaged in the manufacturing of precision engineering components with engineering and machining capabilities catering to the photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries.
He added that the group also offers value-added services comprising surface finishing, sheet metal fabrication and mechanical sub-assembly to complement its business offerings.
“The future of manufacturing is about precision. As automation takes hold across industries, the landscape for precision engineering components is undergoing a significant transformation. This is driven by the surge in industrial applications across the industries that we serve.
“Paired with the increase in outsource manufacturing and continuous push for product innovations, we foresee accelerated demand for precision engineering components over the coming years. Currently, all our existing factories’ production floor space is already fully utilised.
“We believe we are well-positioned to grow further given the approval received from Bursa Securities for our Listing. Pursuant to our Listing, we plan to expand our production floor space through the construction of a new factory and to increase our operating capacity by purchasing new computer numerical control (CNC) machines to enable us to cater for our plan to grow our customer base and serve more local and international customers,” he said.
For the record, Affin Hwang Investment Bank Berhad is the Principal Adviser, Sponsor, Sole Placement Agent and Sole Underwriter for this IPO exercise.
