KUALA LUMPUR (Sept 3): 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) on the ACE Market of Bursa Malaysia.

In a statement on Tuesday, the Penang-based company said it is targeting to list in the fourth quarter of this year.  

Northeast’s IPO will comprise a public issuance of 168.99 million new 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 include 37 million shares for application by the Malaysian public.

Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO exercise.

Northeast managing director Ng Chay Chin said: “To ensure that we can deliver continuous growth and cater for future demand, we have already put in place strategic plans to fuel our expansion, including the construction of a new factory and the purchase of new computer numerical control (CNC) machines.”

Meanwhile, Affin Hwang chief executive officer Nurjesmi Mohd Nashir said: “We at Affin Hwang Investment Bank Bhd are privileged to be part of this significant milestone for Northeast.

“With a proven track record since its establishment in 2004, Northeast is well-positioned to capitalise on the long-term growth opportunities within Malaysia’s precision engineering sector.”

Northeast manufactures precision engineering components used in photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries.

The company is involved in the entire manufacturing process for precision engineering components covering process engineering to mechanical sub-assembly.