PETALING JAYA: Precision engineering components manufacturer Northeast Group Bhd has signed an underwriting agreement with Affin Hwang Investment Bank Bhd for its proposed initial public offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia.
Northeast is set to list in the fourth quarter of 2024.
In a statement, the company said its IPO comprised a public issue of 168.99 million new ordinary shares and an offer for sale of 51.8 million existing shares.
The issue shares, representing 22.8% of the enlarged issued share capital, will comprise 37 million shares for application by the public.
Meanwhile, 29.6 million shares will be reserved for the eligible directors, employees, and business associates who have contributed to the success of the group.
Additionally, 61.69 million shares will be made available through private placement to selected investors; and 40.7 million shares will be made available through private placement to identified bumiputra investors approved by the Investment, Trade and Industry Ministry (Miti).
The offer shares, representing 7% of the company’s enlarged issued share capital, will be allocated through private placement to identified bumiputra investors approved by Miti.
Northeast is principally involved in the manufacturing of precision engineering components with engineering and machining capabilities catering to the photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries.
