Northeast Group Bhd made its ACE Market debut, with shares up 6% following its initial public offering (IPO) raising RM84.49 million.
The upbeat IPO for the precision components maker's stock has seen strong crowd response, with 73.42 times subscription.
Shares opened at 53 sen, above the IPO price of 50 sen, with the company quickly reaching a valuation of almost RM400 million.
Northeast Group specializes in manufacturing precision engineering components for industries such as photonics, semiconductors and telecommunications.
A large portion of the IPO proceeds, 47.34% is earmarked for the construction of a new factory to support production expansion, while 14.65% will be used to acquire 36 new CNC machines.
The company's leadership, including Managing Director Ng Chay Chin and Senior Operations Director Ng Chai Hee, were among those selling existing shares.
Strong investor interest and robust oversubscription reflect the market's confidence in Northeast Group's growth potential, positioning the Penang-based company for continued expansion in its key sectors.
