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Precision parts manufacturer Northeast Group Bhd has obtained approval from Bursa Malaysia to conduct its initial public offering (IPO) on the Growth Enterprise Market (GEM).
This means that the company, headquartered in Penang, 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 across industries, the outlook for precision engineering components is undergoing significant transformation. With our listing approval, we are prepared for further development."
Northeast is raising funds through its IPO to expand its business footprint, including constructing a new factory costing over 50 million ringgit.
According to the draft prospectus, the IPO involves the public offering of 1.06899 billion new shares and the sale of 51.8 million shares by major shareholders, representing 30% of the equity.
Among the public offering of 1.06899 billion new shares, 37 million shares are available for public subscription, 29.6 million shares are reserved for eligible investors, and 1.238 million shares are privately placed to specific investors and natives. At the same time, shares donated by major shareholders will be privately allocated to indigenous investors.
The group will use the funds raised through the issuance of new shares to finance the new factory in Penang, 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 has been fully utilized."
He added that the group plans to expand production areas and improve operational capacity to "enable us to implement plans to expand our customer base and serve 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 and senior operations director, Ng Chai Hee.
Affin Hwang Investment Bank is the lead advisor, sponsor, exclusive placement agent, and exclusive underwriter for this IPO.
This means that the company, headquartered in Penang, 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 across industries, the outlook for precision engineering components is undergoing significant transformation. With our listing approval, we are prepared for further development."
Northeast is raising funds through its IPO to expand its business footprint, including constructing a new factory costing over 50 million ringgit.
According to the draft prospectus, the IPO involves the public offering of 1.06899 billion new shares and the sale of 51.8 million shares by major shareholders, representing 30% of the equity.
Among the public offering of 1.06899 billion new shares, 37 million shares are available for public subscription, 29.6 million shares are reserved for eligible investors, and 1.238 million shares are privately placed to specific investors and natives. At the same time, shares donated by major shareholders will be privately allocated to indigenous investors.
The group will use the funds raised through the issuance of new shares to finance the new factory in Penang, 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 has been fully utilized."
He added that the group plans to expand production areas and improve operational capacity to "enable us to implement plans to expand our customer base and serve 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 and senior operations director, Ng Chai Hee.
Affin Hwang Investment Bank is the lead advisor, sponsor, exclusive placement agent, and exclusive underwriter for this IPO.
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