Northeast Group Berhad launched the prospectus for its initial public offering in conjunction with its upcoming listing on the ACE Market of Bursa Malaysia Securities Berhad which is slated for 15 October 2024.
Pursuant to the IPO exercise, Northeast is expected to raise approximately RM84.49 million through the public issue of 168,989,000 new shares at an IPO price of RM0.50 per share. Out of the total proceeds raised, the Group has earmarked 47.34% of the proceeds for the construction of a new factory, while 23.67% will be used towards the repayment of bank borrowings. A further 14.65% will be used towards the purchase of new computer numerical control (CNC) machines, followed by 6.53% being allocated towards working capital. The remaining balance will be channelled towards listing related expenses.
The application of public issue shares by Malaysian public will start today and close at 5.00 p.m. on Thursday, 3 October 2024.
Affin Hwang Investment Bank Berhad is the principal adviser, sponsor, sole placement agent and sole underwriter for this IPO exercise.
