‘Can withstand too, an okay opening for this company.’
June 7, 2022 has witnessed the local industrial brush manufacturer, Yew Lee Pacific Group Bhd (YLPG) make its first appearance (debut) in Bursa Malaysia.
During the opening session this morning, YLPG shares traded 28.5 sen with a premium of 0.5 sen or 1.75% compared to the initial public offering (IPO) price of 28 sen.
At 10am, YLPG shares became the most actively traded stock with 146.91 million shares traded and rose 1 sen to 29 sen or 3.57%.
A little information about YLPG, it was established in 1992 in Ipoh as a dealer of industrial hardware and machine spare parts before venturing into the field of special industrial brush manufacturing in 2004.
It not only excels in the local market but has also penetrated the Thai market through Padang Besar and Medan, Indonesia besides having bases in Ipoh and Klang.
YLPG's Chief Operating Officer and Executive Director, Amber Ang Poh Yee expressed her happiness over the company's listing and debut as well as expressed her commitment to continue to grow the business.
It is understood that through the listing, YLPG will earn RM37.27 million and M&A Securities Holdings Bhd will act as the company's advisor, sponsor, underwriter and placement agent.
According to the company's filing to the Exchange, the method of distribution of the funds obtained is as follows:
RM10.9 million to purchase machinery and equipment.
RM8.9 million for loan repayment.
RM7.3 million for the construction of new warehouses and offices.
RM1.8 million for the renovation of the company's 3 -storey office.
RM4.57 million for working capital requirements.
RM3.8 million for listing expenses.
In the meantime, Amber commented that among the company's challenges this year is the problem of volatile raw material prices as well as the increase in the minimum wage from May 1.
