Northeast Group shares rise on ACE Market debut
KUALA LUMPUR: Precision engineering components manufacturer Northeast Group Bhd makes its debut on the ACE Market of Bursa Malaysia at 53 sen, representing a 6% premium over its initial public offering (IPO) price of 50 sen.
The counter added 3.5 sen, or 7% with 113 shares changing hands at 9.49 am.
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.
Northeast has successfully raised approximately RM84.5 million through the public issue. Of this amount, RM40mil is earmarked for constructing a new factory.
It said RM20mil will be used for partial repayment of bank borrowings, while around RM12.4mil is allocated for purchasing 36 new computer numerical control (CNC) machines.
This investment aims to enhance overall production capacity and support the group’s plans to grow its customer base, serving more local and international clients.
“As we embark on the subsequent phase of our expansion, we intend to leverage on our existing global presence to grow our customer base and business segments. The strategic allocation of our IPO proceeds will be directed towards enhancing our overall production efficiency, thereby positioning us for future growth and innovation in the years ahead.
“While remaining steadfast in our pursuit of excellence in precision manufacturing, we are confident that the robust foundation we have established and the strategic initiatives we have outlined will enable Northeast to continue to generate value for the shareholders, partners and customers globally and we cannot wait for what the future holds for us,” managing director Ng Chay Chin said in a statement.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for this IPO exercise.
