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Precision parts manufacturer Northeast Group Bhd has obtained approval from the Malaysian stock exchange to conduct its initial public offering (IPO) on the Growth Enterprise Market (GEM).
This means that this Penang-based company has taken another step forward. The group submitted a draft prospectus in March.
Northeast's Managing Director, Ng Chay Chin, said: "As automation becomes more prevalent in various industries, the outlook for precision engineering components is undergoing significant changes. With our listing approval, we are prepared for further growth."
Northeast aims to raise funds through the IPO to expand its business footprint, including the construction of a new factory costing over 50 million ringgit.
According to the draft prospectus, the IPO involves a public offering of 1.0689 billion new shares and the sale of 51.8 million shares by major shareholders, representing 30% of the equity.
Out of the public offering of 1.06899 billion new shares, 37 million shares are available for public subscription, 29.6 million shares are reserved for qualified individuals, and 2.382 million shares are privately placed with specific investors and locals. At the same time, the shares offered by major shareholders will be privately allocated to local investors.
The group will use the funds raised through the issuance of new shares to finance the new Penang factory, with a total production floor area of 0.07902 million square feet. Northeast also plans to purchase new computer numerical control machines, which will increase operational capacity by 8.5% to 25%.
Ng said: "Currently, the production area of all our existing factories is fully utilized."
He added that the group plans to expand the production area and improve operational efficiency to "enable us to achieve the plan of expanding our customer base and serving more local and international customers".
Northeast will also allocate some funds for working capital, repaying bank loans, and paying listing expenses.
The funds raised from the sale of shares by major shareholders will be owned by the selling shareholders, including director Ng and his brother, who is also the senior operations director, Ng Chai Hee.
Ephin Wong Investment Bank is the chief advisor, sponsor, exclusive placement agent, and exclusive underwriter for this IPO.
This means that this Penang-based company has taken another step forward. The group submitted a draft prospectus in March.
Northeast's Managing Director, Ng Chay Chin, said: "As automation becomes more prevalent in various industries, the outlook for precision engineering components is undergoing significant changes. With our listing approval, we are prepared for further growth."
Northeast aims to raise funds through the IPO to expand its business footprint, including the construction of a new factory costing over 50 million ringgit.
According to the draft prospectus, the IPO involves a public offering of 1.0689 billion new shares and the sale of 51.8 million shares by major shareholders, representing 30% of the equity.
Out of the public offering of 1.06899 billion new shares, 37 million shares are available for public subscription, 29.6 million shares are reserved for qualified individuals, and 2.382 million shares are privately placed with specific investors and locals. At the same time, the shares offered by major shareholders will be privately allocated to local investors.
The group will use the funds raised through the issuance of new shares to finance the new Penang factory, with a total production floor area of 0.07902 million square feet. Northeast also plans to purchase new computer numerical control machines, which will increase operational capacity by 8.5% to 25%.
Ng said: "Currently, the production area of all our existing factories is fully utilized."
He added that the group plans to expand the production area and improve operational efficiency to "enable us to achieve the plan of expanding our customer base and serving more local and international customers".
Northeast will also allocate some funds for working capital, repaying bank loans, and paying listing expenses.
The funds raised from the sale of shares by major shareholders will be owned by the selling shareholders, including director Ng and his brother, who is also the senior operations director, Ng Chai Hee.
Ephin Wong Investment Bank is the chief advisor, sponsor, exclusive placement agent, and exclusive underwriter for this IPO.
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