The firm intends to recommend and distribute at least 40% of its annual audited profit attributable to shareholders as dividends

by NUR HAZIQAH A MALEK / Pic courtesy of Yenher

YENHER Holdings Bhd plans to strengthen its product portfolio for local market with RM61.2 million raised from its Main Market debut.

MD Cheng Mooh Tat said the IPO exercise allowed the company to gain better access to the capital market for business expansions.

“We want to strengthen our presence in the domestic market by tapping onto the growth of the local animal health and nutrition industry while exploring new markets to widen our global footprint,” Cheng said after the listing ceremony yesterday.

The animal health and nutrition product manufacturer debuted on the Main Market of Bursa Malaysia Securities Bhd with a 4.74% or 4.5 sen premium at 99.5 sen over its issue price of 95 sen.

The IPO was the third listing on the Main Market this year.

Cheng said the company would continue to research, develop and introduce new products to strengthen the group’s product portfolio.

He said Yenher intends to recommend and distribute at least 40% of its annual audited profit attributable to shareholders as dividends after setting aside adequate reserves for future growth.

Of the RM61.2 million gross proceeds, the group has plans to utilise RM31 million, or 50.6%, to build a new Good Manufacturing Practice-compliant plant while RM9.7 million (15.9%) and RM16.71 (27.3%) have been set aside for machinery purchases and working capital respectively.

Yenher also plans to enter new markets such as Myanmar, Bangladesh and China within the next 24 months.

The group’s revenue for the first quarter of 2021 (1Q21) stood at RM58.8 million and it raked in RM202.6 million for the full financial year of 2020 (FY20), according to its factsheet.

Net profit was at RM22.4 million for FY20 and RM4.9 million for 1Q21. As of March 31, 2021, its total assets stood at RM167.1 million, higher than its total assets in 2020 of RM154.2 million.

Cash and cash equivalents were registered at RM12.6 million against the previous year’s RM24.7 million.

Its total equity at the end of March was at RM133.7 million while total liabilities stood at RM33.4 million.

Yenher shares closed 5.3% lower at 90 sen yesterday, valuing the company at RM270 million.