Yew Lee Pacific listed on Bursa Securities with RM0.29 sen per share

by AZALEA AZUAR / pic by TMR FILE 

YEW Lee Pacific Group Bhd has been listed on the ACE Market of Bursa Malaysia Securities Bhd with an opening price of RM0.285 sen per share.

The company’s IPO is at RM0.28 sen per share.

The firm aims to raise a total of RM37.27 million to buy additional machinery and equipment (RM10.9 million), build a new warehouse facility and office building in Pusing, Perak (RM7.3 million), renovate its new office in Klang, Selangor (RM1.8 million), repay its bank loan (RM1.8 million) and fulfil its working capital requirements (RM4.57 million), while RM3.8 million will be channelled for listing expenses.

The financial adviser for the IPO is Eco Asia Capital Advisory Sdn Bhd while the principal adviser, sponsor, underwriter and placement agent for the IPO is M&A Securities Sdn Bhd.

According to Yew Lee Pacific chairman Mahdzir Othman, the company will continue to strengthen its position in the market as one of the key players in Malaysia’s industrial brush industry.

“We see this listing as an opportunity to realise our future plans and strategies, including the 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,” he said in a statement today.

Mahdzir believes that this will improve Yew Lee Pacific’s inventory and availability levels, as well as shorten the overall lead time for delivery. Meanwhile, purchasing more machinery and equipment will automate production processes and reduce labour costs.

Based on the company’s revenue from the industrial brushes manufacturing segment, which is RM31.6 million during the financial year 2021 (FY21), its market share is 12.4% of the total size of the industrial brush industry in Malaysia which stands at RM254.5 million.

In order to reduce labour dependency, it plans to automate more of its operation and will be expanding into machinery parts trading throughout the central region of Peninsular Malaysia and also establish a bigger presence in Indonesia and Thailand through Yew Lee Indonesia and Yew Lee Thailand.

As of FY22, the company has declared a first interim dividend of RM0.003 sen per ordinary share, which will be paid on July 12 this year.

“I am extremely grateful to share this wonderful moment with the investors, customers and suppliers who have supported our humble 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.