KUALA LUMPUR (April 8): Electronic manufacturing services NationGate Holdings Bhd, which was listed over a year ago in January 2023, said on Monday it plans to transfer its listing status from the ACE Market to the Main Market of Bursa Malaysia.

In a bourse filing on Monday, NationGate stated that it has met the requirements issued by the Securities Commission Malaysia (SC) for the proposed transfer, including equity requirement, public shareholdings spread, along with a healthy financial performance.

NationGate said the proposed listing status will enhance the group's “prestige and reputation, providing greater recognition and acceptance among investors, particularly institutional investors".

“It will also promote the NationGate’s corporate image, leading to greater recognition and confidence among clients, subcontractors, business partners, bankers, employees, and shareholders,” it added.

As of April 1, NationGate has an issued share capital of RM304.54 million, comprising 2.07 billion ordinary shares, as shown in its bourse filing.

For the financial year 2023 (FY2023), its net profit declined to RM60.81 million from RM85.26 million in the previous year, amid lower revenue of RM638.30 million, down from RM945.75 million.

Still, the financial position met SC’s requirements, which mandates an aggregate profit after tax (PAT) of at least RM20 million over the past three to five full financial years, with a PAT of at least RM6 million for the most recent financial year.

For the fourth financial quarter ended Dec 31, 2023 (4QFY2023), NationGate’s net profit decreased by 28.18% to RM15.92 million compared to RM22.17 million in 4QFY2022. Revenue also declined by 20.04% to RM171.58 million from RM214.58 million a year prior.

NationGate attributes the lower earnings to reduced demand in its networking and telecommunication segments, which experienced a 35.29% decline, falling to RM95.46 million from RM147.49 million in the corresponding quarter of the preceding year.

Barring any unforeseen circumstances and subject to all required approvals being obtained, NationGate stated that the proposed transfer is expected to be completed in the first half of 2024.

M&A Securities Bhd has been appointed as the adviser for the proposal.

At the noon break on Monday, shares in NationGate settled one sen or 0.64% higher at RM1.57 — over four-fold its initial public offering price of 38 sen — resulting in a market capitalisation of RM3.26 billion.