KUALA LUMPUR: Northeast Group Berhad, a precision engineering component manufacturer, has received the approval from Bursa Malaysia Securities to list on the ACE Market for expansion.
The company's managing director, Ng Chay Chin, said 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," he said in a statement.
Ng said that the company plans to expand its production floor space by building a new factory and increasing its operating capacity by purchasing new CNC machines.
This expansion will allow Northeast to grow its customer base and better serve both local and international clients, he said.
Northeast 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.
It also offers value-added services comprising surface finishing, sheet metal fabrication, and mechanical sub-assembly to complement its business offerings.
The company's initial public offering (IPO) entails a public issue of 16.98 million new shares and an offer for sale of 51.8 million existing shares.
Of these 220.79 million shares, 37 million shares will be made available to the Malaysian public, and 29.6 million shares will be made available for application by eligible directors, employees, and business associates.
Another 61.689 million shares will be made available by way of private placement to selected investors, while the balance of 92.5 million shares will be made available by way of private placement to identified Bumiputera investors.