Yenher eases after posting premium
PETALING JAYA: Animal health and nutrition product manufacturer Yenher Holdings Bhd made its debut on the Main Market of Bursa Malaysia Securities yesterday, closing lower at 90 sen, 5 sen or 5.3% below its offer price of 95 sen, with 61.83 million shares changing hands.
Yenher opened at 99.5 sen, representing a premium of 4.5 sen or 4.7%.
Its initial public offering (IPO) raised RM61.21 million, of which Yenher has earmarked RM31 million for the construction of a Good Manufacturing Practice-compliant factory, RM9.7 million for the purchase of new machinery and equipment, RM16.71 million for working capital and the remaining RM3.8 million for listing expenses.
Yenher group managing director Cheng Mooh Tat said the IPO has given the company the opportunity to gain better access to the capital market for business expansion. He said the company will explore new markets to widen its global footprint and will expand to markets such as China, Myanmar and Bangladesh.
“We will continue to strengthen our presence in the domestic market by tapping onto the growth of the local animal health and nutrition industry,” Cheng told reporters at a
virtual press conference yesterday.
He said the company will distribute a dividend of at least 40% of its annual profit.
Its finance deputy general manager, Lim Sek Yang, said the impact of the Covid-19 pandemic has not affected the company’s operations.
“At our factory in Penang, we are operating with 80% of total workforce with only technical and sales teams work remotely.
“We will continue to research, develop and introduce new products to strengthen our product portfolio
and to meet the changing demands of the livestock industry.”
Lim said the company is optimistic about the industry’s outlook as it is projected to grow at a compound annual growth rate of 4.3% from 2020 to 2025, based on market research.
Its business development and sales general manager, Lee Choon Shen, said the company has been working on a new probiotic additive that is currently in the prototype testing stage and expects to complete it by September depending on the outcome of farm trials.