Yew Lee Pacific Group Berhad Launches Prospectus for ACE Market IPO
May 17 2022 - 12:30AM
JCN Newswire
Yew Lee Pacific Group Berhad (YLPG), an established manufacturer
principally involved in the manufacturing of industrial brushes as
well as the trading of machinery parts and industrial hardware,
launched the Company's prospectus today for an initial public
offering (IPO) leading to a listing on the ACE Market of Bursa
Malaysia Securities Berhad.
The Company's IPO involves the issue of 133.10 million new shares
to be issued at RM0.28 sen per share and an offer for sale of 26.62
million existing shares by way of private placement to selected
investors. The public issue shares will be made available for
application in the following manner:
Public issue
- 26.62 million new shares made available for application to the
Malaysian public
- 15.97 million new shares allocated for application by eligible
directors and employees
- 23.96 million new shares by way of private placement to selected
investors
- 66.55 million new shares by way of private placement to
identified bumiputera investors approved by the Ministry of
International Trade and Industry (MITI)
The IPO is expected to raise gross proceeds of RM37.27 million to
be utilised in the following manner:
Utilisation of proceeds
- RM10.90 million for purchase of machinery and equipment
- RM7.30 million for construction of warehouse facility and office
building
- RM1.80 million for renovation of office building
- RM8.90 million for repayment of bank borrowings
- RM4.57 million for working capital
- RM3.80 million for listing expenses
Managing Director of YLPG, Mr. Ang Lee Leong, said: "The launch of
this Prospectus is an important milestone for us as it marks the
fruits of our labour from when we first started operations in 2004.
As an established producer of industrial brushes, we embarked on
this IPO to raise funding for our growth plans and elevate our
profile in the industry."
"To maintain sustainable growth and create long-term shareholder
value, we have plans to expand manufacturing capacity and increase
automation which the proceeds from the IPO enables us to implement.
We are also constructing warehouse and office facilities as the
current facilities are needed for the expansion of the Group's
manufacturing activities and also to cater for future business
growth."
YLPG produces industrial and technical brushes for various
manufacturing industries including glove, industrial, electrical
and electronic, industrial and commercial cleaning providers as
well as glass and wood producers. For the financial year ended 31
December 2021 (FY2021), 76.8% of the Group's total revenue was
mainly derived from Malaysia while the remaining 23.2% was derived
from the overseas market primarily located in Thailand, Vietnam,
Indonesia and Taiwan, representing approximately 7.0%, 5.8%, 3.3%
and 5.8% respectively.
Deputy Head of Corporate Finance, M&A Securities Sdn Bhd, Mr.
Danny Wong said: "The proceeds from the IPO will allow YLPG to
increase its manufacturing capacity in order to support its
expansion plans and capitalise on the post Covid demand recovery.
As such, we are confident that Yew Lee's shares will be well
received upon IPO."
M&A Securities is the Principal Adviser, Sponsor, Underwriter
and Placement Agent for YLPG's IPO while Eco Asia Capital Advisory
Sdn Bhd is the Financial Adviser.
Yew Lee Pacific Group Bhd: https://yewlee.com.my/
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