ELECTRONICS manufacturing services (EMS) provider NationGate Holdings Bhd’s IPO for the public portion has been oversubscribed by 16.49 times.
In a statement today, it informed that a total of 20,444 applications seeking 1.81 billion new shares, valued at RM689.16 million were received from the Malaysian public for 103.70 million new shares that were made available for public subscription.
The Bumiputera public portion of shares, it said, was oversubscribed by 9.1 times, after a total of 9,431 applications for 523.5 million new shares received.
For the remaining public portion, it said, a total of 11,013 applications for 1.29 billion new shares were received, which represents an oversubscription rate of 23.88 times.
Meanwhile, the 103.7 million new shares for its eligible directors, employees and persons who have contributed to the success of NationGate Group have also been fully subscribed, it noted.
In addition, its placement agent has confirmed that 518.48 million shares made available for application by way of private placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry (MITI) and selected investors have been fully placed out.
The company said it is is delighted to see strong support from retail investors in its shares. The subscription amount received indicates the public’s confidence in NationGate’s business model and future plans.
NationGate MD Ooi Eng Leong said part of the IPO proceeds will enable the company to purchase various raw materials, consumables and electronic components consumed for its EMS activities in tandem with the expected growth in its EMS business activities.
“It will also enable NationGate to partly finance the acquisition of new machineries and equipment to expand its EMS service offerings and surface mount technology assembly capacity to cope with the rising demand from its existing multinational customers and new customers in the next 36 months,” he added.
Under the listing exercise, NationGate is expected to raise RM165.5 million from its public issue of 435.53 million shares at an issue price of 38 sen per share.
The listing also includes an offer for sale of 290.35 million existing shares to selected Bumiputera investors approved by the MITI and selected investors.
Based on the enlarged share capital of 2.07 billion shares, the total market capitalisation of NationGate would be RM788.09 million on its debut on Jan 12, 2023, making it the largest listing on the ACE Market of Bursa Malaysia Securities Bhd.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise. — TMR
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