NationGate IPO oversubscribed by 16.49 times

NationGate is expected to raise RM165.5mil from its public issue of 435.53 million shares at an issue price of RM0.38 per share.

PETALING JAYA: The public portion of electronics manufacturing services provider Nationgate Holdings Bhd’s initial public offering (IPO) has been oversubscribed 16.49 times.The ACE Market-bound company said there was a total of 20,444 applications for 1.81 billion new shares valued at RM689.16mil received from the Malaysian public.

The bumiputra public portion of shares was oversubscribed 9.1 times with a total of 9,431 applications for 523.5 million new shares received.

For the remaining public portion, a total of 11,013 applications for 1.29 billion new shares were received, which represents an oversubscription rate of 23.88 times.

Meanwhile, the 103.70 million new shares for its eligible directors, employees and persons who have contributed to the success of NationGate Group were also fully subscribed.

In addition, its placement agent confirmed that 518.48 million shares made available for application by way of private placement to selected bumiputra investors approved by the Ministry of International Trade and Industry and selected investors have been fully placed out.

Under the listing exercise, NationGate is expected to raise RM165.5mil from its public issue of 435.53 million shares at an issue price of RM0.38 per share.

Based on the enlarged share capital of 2.07 billion shares, the total market capitalisation of NationGate would be RM788.09mil on its debut on January 12, 2023, making it the largest listing on the ACE Market of Bursa Malaysia.

NationGate managing director Ooi Eng leong said part of the proceeds will enable the company to purchase various raw materials, consumables and electronic components consumed for the company’s electronic manufacturing services (EMS) activities in tandem with the expected growth in its EMS business activities.