KUALA LUMPUR: Eelectronic manufacturing services provider NationGate Holdings Bhd is offering 290.4 million shares as it heads for a listing on Bursa Malaysia's ACE Market.
NationGate's initial public offering (IPO) also comprises a public issue of 435.5 million new shares.
NationGate today said it had signed an underwriting agreement with M&A Securities Sdn Bhd for the listing.
M&A Securities will underwrite a total of 207.4 million new shares made available to the public and its eligible directors and employees as well as persons who have contributed to the company's success under the pink form allocations.
The remaining 228.1 million new shares will be placed out to selected investors.
As for the offer for sale portion, all 290.4 million shares will be allocated by way of private placement to selected investors and Bumiputera investors approved by the Ministry of International Trade and Industry.
M&A Securities, besides being the underwriter of NationGate's IPO, is also the adviser, sponsor and placement agent for the exercise.
NationGate managing director Ooi Eng Leong said the underwriting agreement had taken the company a step closer towards listing.
"By being a listed entity, we hope to further increase confidence among our investors, stakeholders and customers while we continue to work towards enhancing the long-term value of our company by providing quality products and services to our customers.
"The listing will enable us to tap into the equity capital market to raise funds for working capital requirements to purchase various raw materials, consumables and electronic components consumed for the company's EMS activities in tandem with the expected growth in its EMS business activities."
He said part of the proceeds would also be used to acquire new machineries and equipment to expand our surface mount technology assembly capacity, repay bank borrowings and to defray estimated listing expenses for the IPO.
NationGate focuses on the assembly and testing of electronic components and products to produce completed printed circuit boards, semi-finished sub-assemblies and fully-assembled electronic products as well as semiconductor devices.
It targets for the listing by the first quarter of 2023.