Yew Lee Pacific to raise RM37m from listing exercise

by NURUL SUHAIDI / pic by MUHD AMIN NAHARUL

YEW Lee Pacific Group Bhd is embarking on a listing exercise on the ACE Market of Bursa Malaysia and aims to raise RM37 million from the offer of 133.1 million new shares at an issue price of 28 sen per share.

The industrial brush manufacturer and trader of machinery parts and industrial hardware will also offer 26.62 million existing shares for sale to the Malaysian public.

Some 23.96 million new shares will be made available for private placement while 15.97 million new shares allocated for application by eligible directors and employees.

Another 66.55 million new shares are offered to eligible Bumiputera investors approved by the Ministry of International Trade and Industry.

“The purchase of machinery and equipment will enable us to increase the automation levels of our manufacturing process, thus improving overall operating capacity and efficiency of our manufacturing processes while also increasing the quality consistency of our industrial brushes,” Yew Lee MD Ang Lee Leong (third from right) said at the launch of its prospectus today.

The company primarily caters to glovemakers with over 80% of its revenue derived from the sector, while the remaining business comes from the electric and electronic sectors, food processors, as well as industrial and commercial cleaning producers.

Most of the RM37.27 million proceeds from the IPO will be utilised to fund its expansion goals and elevate its profile in the industry including for the construction of a warehouse.

“Aside from expanding the manufacturing capacity, we are also building a new warehouse in Ipoh and a new office in Klang, Selangor for the training segment,” Yew Lee’s CEO Ang Poh Yee (third from left) said.

She added that despite Covid-19 vaccinations have potentially lessened glove demand, glove manufacturing remains sustainable and Yew Lee is diversifying its business segments to enhance its position.

“We remain optimistic with the brush industry sector’s outlook despite the crisis in the supply chain,” she added.

Moving forward, Yew Lee targets to diversify its business to other industries such as glass making and food industry.

Upon listing, Yew Lee will achieve a market capitalisation of RM149 million.

For the financial year ended Dec 31, 2021, 76.8% of Yew Lee’s total revenue was derived from Malaysia while the remaining 23.2% was derived from overseas markets such as Thailand (7% of revenue), Vietnam (5.8%), Indonesia (3.3%) and Taiwan (5.8%) respectively. 

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