Electronics manufacturing services (EMS) provider NationGate signed an Underwriting Agreement with M&A Securities for its listing on the ACE Market of Bursa Securities.
The ACE-Market bound NationGate is an EMS provider focusing 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.
Its customer profiles include a diverse range of industries such as networking and telecommunications, data computing, industrial instruments, consumer electronics, automotive, semiconductor and others (mainly consists of
manufacturers of medical devices, Internet of Things, household electronic products and analytical instrumentation devices).
The initial public offering (IPO) comprises a public issue of 435.5 million new shares in NationGate and an Offer for Sale of 290.4 million existing shares.
Under the Underwriting Agreement, M&A Securities will underwrite a total of 207.4 million new shares made available to the Malaysian public and 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.
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.
The signing of the Underwriting Agreement not only reiterates the underwriter’s confidence in NationGate, but also takes the Company a step closer towards listing on Bursa Securities, according to Mr. Ooi Eng Leong, Managing Director of NationGate.
“NationGate has grown organically in the past 12 years since its inception. Most notably, the Company has expanded its EMS capabilities to include value-added supporting services such as high precision plastic injection moulding, prototyping for manufacturability, supply chain management and packaging. In 2020, it also expanded its EMS services into the semiconductor industry,” Mr Ooi remarked.
“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,” he added.
“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 will 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,” he added.
M&A Securities is appointed as the underwriter, adviser, sponsor and placement agent for this IPO exercise.
NationGate targets to float its shares on the ACE Market of Bursa Securities by the first quarter of 2023.
