PETALING JAYA: NationGate Holdings Bhd, en route to a listing on Bursa Malaysia’s ACE Market on Jan 12, has recorded an oversubscription rate of 16.49 times for the public portion of its initial public offering (IPO).
The electronics manufacturing services (EMS) provider said a total of 20,444 applications seeking 1.81 billion new shares, valued at RM689.16 million were received from the Malaysian public for 103.70 million new shares that were made available for public subscription.
The bumiputra public portion of shares were oversubscribed by 9.10 times, after a total of 9,431 applications for 523.50 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.
Additionally, 103.70 million new shares for its eligible directors, employees and persons who have contributed to the success of the group have been fully subscribed.
Meanwhile, its placement agent has 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.
Managing director Ooi Eng Leong (pic) said part of the proceeds will enable the group to purchase various raw materials, consumables and electronic components consumed for the group’s EMS activities in tandem with the expected growth in its EMS business activities.
“It will also enable NationGate to part finance the acquisition of new machineries and equipment to expand its EMS service offerings and surface mount technology assembly capacity to cope with the rising demand from its existing multinational customers and new customers in the next 36 months,” he said in a statement.