Mahdzir (fifth left) with (from left) Yew Lee Pacific’s independent non-executive directors Andrea Huong, Lim See Tow and Andrew Yaw, chief operating officer and executive director Ang Poh Yee, managing director Ang Lee Leong, executive directors Chee Wai Ying and Ang Lee Seng. Also present were M&A Securities managing director of corporate finance Datuk Bill Tan (third right), M&A Securities deputy head of corporate finance Danny Wong (second right) and Eco Asia Capital Advisory financial adviser Woon Soon Fai (right).
KUCHING (June 7): Yew Lee Pacific Group Bhd (Yew Lee), an established manufacturer principally involved in the manufacturing of industrial brushes as well as trading of industrial hardware and machinery parts, was the top active stock on Bursa Malaysia after its successful listing on the ACE Market with an opening price of RM0.285 sen per share, compared with the initial public offering (IPO) price of RM0.28 sen per share.
As of time of writing, more than 157.01 million shares were traded.
Thanking the Securities Commission Malaysia, Bursa Securities, M&A Securities Sdn Bhd (M&A Securities), Eco Asia Capital Advisory Sdn Bhd (Eco Asia Capital Advisory) and other professionals involved in the IPO, Yew Lee chairman Mahdzir Othman said that he is extremely grateful to share this wonderful moment with the investors, customers and suppliers who have supported their company since its inception in 2004 as an industrial brush manufacturer.
“We are overwhelmed by the positive response and are very pleased with our debut on the ACE Market today,” Mahdzir added.
The company is raising RM37.27 million from the IPO exercise. From the IPO proceeds, RM10.9 million would be used for the purchase of additional machinery and equipment, RM7.3 million for the construction of a new warehouse facility and office building in Pusing, Perak, RM1.8 million for renovation of new office in Klang Selangor, RM8.9 million for the repayment of bank borrowings, RM4.57 million for working capital requirements and RM3.8 million for the listing expenses.
Mahdzir also announced that Yew Lee will continue to strengthen their market position as one of the key industry players in the industrial brush industry in Malaysia.
“We see this listing as an opportunity to realise our future plans and strategies, including expansion and upgrading of our production facilities as well as developing a range of customisable industrial brushes catering to a diverse customer base.
“As such, we have also allocated RM3.6 million from our IPO to make advance purchases on materials to support the increase in our manufacturing activities in tandem with the rise in demand of our range of brushes.
“This will improve our inventory and availability levels and shorten overall lead time for delivery. The purchase of additional machinery and equipment is also to automate production processes and reduce labour costs.”
Yew Lee currently has an estimated market share of 12.4 per cent of the total size of the industrial brush industry in Malaysia of RM254.5 million in 2021, based on the company’s revenue from the manufacturing of industrial brushes segment of RM31.6 million during the financial year ended December 31, 2021.
The company plans to automate more of its operations to reduce dependency on labour and intends to expand market share in the trading of machinery parts in the central region of Peninsular Malaysia as well as have a bigger presence in Indonesia and Thailand through Yew Lee Indonesia and Yew Lee Thailand, both of which were established in 2019.
The company recently declared a first interim dividend of RM0.003 sen per ordinary share in respect of financial year ending December 31, 2022 (FY22) to be paid on July 12, 2022.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for Yew Lee’s IPO while Eco Asia Capital Advisory is the financial adviser for the IPO.
from Borneo Post Online https://bit.ly/3mooXpq
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