Explosive Bursa debut for NATGATE 0270 NATIONGATE HOLDINGS BERHAD

Explosive Bursa debut for  NATGATE 0270 NATIONGATE HOLDINGS BERHAD

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

KUALA LUMPUR: NationGate Holdings Bhd made a strong debut on the ACE Market of Bursa Malaysia with a whopping 62 sen premium over its offer price.

NationGate opened at 81 sen, a 43 sen or 113.2 per cent premium from its initial public offering (IPO) price of 38 sen, before ending the first day at RM1.

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

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

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

Managing director Ooi Eng Leong said the company was 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).

Ooi believes that the accelerated 5G adoption and the move toward EV is going to have a positive impact on the networking, telecommunications and automotive sectors in the long run.

"NationGate provides EMS and technical support to its customers, many of whom are multinational companies from high growth industries such as networking and telecommunications, industrial instruments, data computing, consumer electronics, automotive and semiconductor.

"Over the last three years, the Group has seen increasing orders from its customers from networking and telecommunications, data computing, automotive and semiconductor segments.

"The widespread deployment of 5G networks and high demand for EV should continue to benefit the networking, telecommunications and automotive sectors in terms of order visibility and lengthened the sectors' upcycle," he said.

As at Nov 14 2022, NationGate had unbilled purchase orders of RM369.5 million which are to be billed upon delivery progressively over the next 12 months.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO.

https://www.nst.com.my/business/2023/01/869634/explosive-bursa-debut-nationgate