KUALA LUMPUR: NationGate Holdings Bhd expects to raise RM165.5 million from its listing exercise on the ACE Market of Bursa Malaysia.
This would make it the largest listing on the ACE Market, the company said today.
With an issue price of 38 sen per share and an enlarged share capital totalling 2.1 billion shares, the company is expected to have a market capitalisation of RM788.1 million on its debut on Jan 12 next year.
Managing director Ooi Eng Leong said in line with the company's strategy to expand its electronics manufacturing service (EMS) business, NationGate would add four surface mount technology (SMT) assembly lines for its printed circuit board assembly (PCBA) services.
"These new machinery and equipment are also expected to enhance our EMS efficiencies. As at Nov 14, 2022, we have a monthly production capacity for SMT services of up to 1.26 billion mounting points per month.
"Upon 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 1.29 billion mounting points per month," he said in a statement today.
NationGate plans to use RM48.4 million (29.2 per cent) raised from the initial public offering (IPO) to buy various raw materials, consumables and electronic components for its EMS activities in tandem with the expected growth in the EMS business activities.
A further RM5.9 million (3.6 per cent) of the proceeds will be used to buy additional machineries and equipment to expand its SMT assembly capacity by up to 38.4 million mounting points to a maximum of 1.3 billion mounting points per month and enhancing its production efficiency at Plant 5.
This was in line with the increased demands from its existing and new customers.
The remainder of the proceeds of RM105.5 million (63.8 per cent) and RM5.7 million (3.4 per cent) will be used for the repayment of bank borrowings and to defray the estimated listing expenses respectively.
Under the listing, NationGate is issuing 435.5 million new shares, representing 21 per cent of the enlarged share capital.
Of the 435.5 million new shares, 103.7 million new shares will be made available to the Malaysian public via balloting, 103.7 million new shares for its eligible directors and employees as well as persons who have contributed to the success of NationGate under the Pink Form allocations, while the remaining 228.1 million new shares will be placed out to selected investors.
The company's existing shareholders will also make an offer to sell 290.4 million existing shares to selected investors and Bumiputera investors approved by the Ministry of International Trade and Industry by way of a private placement.
The IPO is open for subscription from today until Dec 30.