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Singapore Investment


Listing-bound  NATGATE 0270 NATIONGATE HOLDINGS BERHAD's fair value is 54 sen, says PublicInvest

Public Investment Bank Bhd has derived a fair value of 54 sen for soon-to-be-listed NationGate Holdings Bhd.

KUALA LUMPUR: Public Investment Bank Bhd has derived a fair value of 54 sen for soon-to-be-listed NationGate Holdings Bhd.

This is based on a 14 times price earnings multiple to its financial year 2023 forecasted earnings per share of 3.9 sen.

NationGate is tentatively slated to be listed on Bursa Malaysia's ACE Market on Jan 12 with an initial public offering (IPO) price of 38 sen.

NationGate is an established electronics manufacturing services (EMS) provider with a focus on the assembly and testing of electronic components and products to produce completed printed circuit boards, semi-finished sub-assemblies and fully-assembled electronic products as well as semiconductor devices.

PublicInvest said the IPO was expected to raise RM165.5 million from the issuance of 435.5 million new shares.

Of the amount, NationGate will be using 3.6 per cent for the acquisition of machinery and equipment, 29.2 per cent for working capital requirements and 63.8 per cent for repayment of bank borrowings.

PublicInvest said NationGate's growth would be driven by expansion of its electronics manufacturing services offerings to its existing customers, securement of more new customers, business collaboration with GoldTek Technology Co Ltd and expansion of its SMT assembly capacity.

"NationGate's competitive strengths include having the technical capabilities and sizeable manufacturing footprint, having established business relationships with international customers, commitment towards stringent quality assurance, and having an experienced management team."

Its key drivers may include rapid changing technologies and increasing electronics content in new manufactured products, continuing pursuit of leaner capital structure by manufacturers, presence of an established electronics cluster in Malaysia, broad range of end-user market and continuing government support.


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