Yew Lee ends debut day at 29 sen
KUALA LUMPUR: Yew Lee Pacific Group Bhd was listed on Bursa Malaysia’s ACE Market yesterday with an opening price of 28.5 sen, a premium of half a sen over its initial public offering (IPO) price of 28 sen.
The stock ended the day at 29 sen and was the second most active stock yesterday.
Chief operating officer and executive director Ang Poh Yee said Yew Lee had raised RM37.27 million from the listing exercise.
“We will use a portion of the proceeds to buy new machinery and produce more diverse products for our other business segments such as semiconductors and as wood and glass manufacturing,” she said after the listing.
It will use RM10.9 million from the IPO proceeds to purchase additional machinery and equipment, RM7.3 million for the construction of a new warehouse and office in Pusing, Perak, and RM8.9 million for the repayment of bank borrowings.
About RM4.57 million is earmarked for working capital requirements, RM3.8 million to defray the listing expenses and RM1.8 million for the renovation of its new office in Klang.
Ang said the company expected raw material prices to stabilise, which would translate to improvement in its profit margin.
“The next challenge is the increase in our workers’ minimum wage. We hope we can reduce the overhead cost by buying more advanced machines.”
She the company planned to expand its sites in Indonesia and Thailand to include areas for sales and training before venturing into the manufacturing of brushes.
“We are confident we will be able to see a stable profit margin and revenue growth this year.”
Yew Lee has an estimated market share of 12.4 per cent in the industrial brush industry in Malaysia.
Its revenue from the manufacturing of industrial brushes came in at RM31.6 million in its financial year ended Dec 31 last year.