NATIONGATE HOLDINGS MAKES ACE MARKET DEBUT AT 81 SEN

KUALA LUMPUR, Jan 12 (Bernama) -- NationGate Holdings Bhd made its debut on the ACE Market at 81 sen today, notching up a premium of 43 sen or 113.2 per cent over its initial public offering (IPO) price of 38 sen. 

At the opening bell, the counter saw 65.81 million shares changing hands. 

Managing director Ooi Eng Leong said the listing is a timely progression, as the company is ready for further growth. 

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“We did expect a premium at the opening bell but we didn’t expect it to go this high. We are certainly encouraged by the overwhelming response from the public. This is a testimonial to the public’s confidence in NationGate’s business model and future plans. 

“The listing will facilitate NationGate with greater financial (resources) to pursue growth opportunities and enhance our reputation in the marketing of our services to expand the customer base, as well as to retain and attract experienced professionals in the electronics manufacturing services (EMS) industry,” he told a press conference after the listing ceremony today. 

On Jan 5, the EMS provider reported that its shares were oversubscribed by 16.49 times. 

The group raised RM165.5 million through its IPO exercise, making it the largest listing on the ACE Market.

NationGate had a market capitalisation of RM788.1 million based on an enlarged share capital of 2.1 billion shares.

The company is an established EMS provider for the networking, telecommunications, instrumentations, consumer product, medical devices and automotive industries. 

It is set to ride on the networking, telecommunications and automotive sectors boom given the widespread deployment of 5G networks and high demand for electric vehicles (EV).

“Currently, we operate our EMS business from our EMS manufacturing facility located in Seberang Prai and Taiping.

“We believe that 5G adoption and EV are going to have a positive impact on the networking, telecommunication and automotive sectors, which in turn will benefit NationGate,” Ooi said. 

On 5G, corporate services director Tay Seng Chew said NationGate’s order book is set to remain strong and he foresaw the continued growth of its communication and networking segment in tandem with the 5G deployment worldwide. 

He said NationGate is a 100 per cent export-oriented EMS company; hence, its primary customers are major global players. 

As of Nov 13, 2022, NationGate had unbilled purchase orders of RM369.5 million, which were to be billed upon delivery progressively over the next 12 months. 

Commenting on the wider industry outlook, Tay said the global outlook is very tense with the ongoing geopolitical tensions and China’s zero Covid-19 policy. 

“But as China is opening up, we believe that economy will be more buoyant in the Asia-Pacific region. I believe many Chinese manufacturing products have to move out and in that regard, I think they will flow into Asean countries. We will benefit from it,” he said.

-- BERNAMA