From left: Northeast Group Bhd executive director Chong Ewe Hean, Northeast managing director Ng Chay Chin, Affin Hwang Investment Bank Bhd chief executive officer Nurjesmi Mohd Nashir and Affin Hwang Investment Bank managing director of capital markets Johan Hashim.
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 targeted to list in the fourth quarter of 2024.
In a statement, the company said its IPO comprises 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 approximately 22.8% of the enlarged issued share capital, will comprise 37 million shares for application by the Malaysian 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 Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia (Miti).
The offer shares, representing 7% of the company’s enlarged issued share capital, will be allocated through private placement to identified Bumiputera investors approved by Miti.
Affin Hwang Investment Bank is the principal adviser, sponsor, sole placement agent and sole underwriter for this IPO exercise.
Northeast is principally engaged in the manufacturing of precision engineering components with engineering and machining capabilities catering to the photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries.
The group also offers value-added services comprising surface finishing, sheet metal fabrication and mechanical sub-assembly to complement its business offerings.
