GEORGE TOWN: Northeast Group Bhd aims to raise RM84.5mil through its initial public offering, scheduled for Oct 15.
Northeast will issue 168,989,000 new shares at RM0.50 a piece to raise the targeted amount.
The group will use 47.34% of the proceeds to build a new factory, while 23.67% will be used to repay bank borrowings.
A further 14.65% will be used to purchase new computer numerical control machines, followed by 6.53% allocated to working capital.
The remainder will be channelled towards listing-related expenses.
Group chairman Datuk Seri Lee Kah Choon said Northeast had extended beyond local borders, with more than 70% of its revenue derived from overseas markets, attesting to the group’s quality and ability to meet international standards.
“Likewise, we have expanded our operations and diversified our product offerings to cover a broad spectrum of industries, including photonics, electrical and electronics, semiconductors, telecommunication, and optoelectronics.
“The growth in these industries coupled with the increase in outsourcing of manufacturing works, government initiatives, and continuous innovation in product development will spur demand for the manufacturing of precision engineering components in the coming years,” Lee said at the group’s prospectus launch in Penang, yesterday.
Northeast managing director Ng Chay Chin said, from humble beginnings, the group had made it its mission to push the boundaries beyond what was possible in precision manufacturing.
“Over the past two decades, we have transitioned ourselves into a reputable manufacturer of precision engineering components, with our presence now extending beyond local borders.
“Paired with our upcoming listing, we plan to ride existing opportunities and capitalise on favourable industrial trends to increase our market share, supported by growth in our customers’ industries, increase in outsourcing of manufacturing work, government initiatives, and continuous innovation in product development,” Ng said.
Northeast is principally involved in manufacturing precision engineering components used in the photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries.
The group is involved in the entire manufacturing process for precision engineering components through its in-house expertise covering process engineering to mechanical sub-assembly.
Headquartered in Penang, Northeast serves customers in the United States, Britain, Thailand, Singapore, Canada, Germany and Hungary.
