Yenher to raise RM61m for expansion
23 Jun 2021
The firm expects to commence testing and commissioning its new manufacturing plant in 1Q23
Yenher Holdings Bhd aims to raise about RM61.21 million from its listing on the Main Market of Bursa Malaysia Securities Sdn Bhd to fund its market and plant expansion.
Yenher group MD Cheng Mooh Tat said the group plans to use about RM31 million of the gross proceeds to construct a new good manufacturing practice-compliant manufacturing plant.
It would utilise RM9.7 million for new machinery and equipment purchases for the new manufacturing plant. At the same time, RM16.71 million would be used as working capital, and the remaining RM3.8 million to finance the listing expenses.
Cheng said the company expects to commence testing and commissioning its new manufacturing plant in the first quarter of 2023 (1Q23) and be fully operational in 4Q23.
“With the completion of the new manufacturing plant, new machinery and equipment in place, we will be able to increase our production capacity and be ready to meet the higher demand for our products,” Cheng said during the virtual prospectus launch yesterday.
Yenher, mainly involved in the manufacture and distributorship of animal health and nutrition products, is slated for listing on July 1, 2021, with an expected market capitalisation of RM285 million.
Yenher’s IPO would comprise a public issue of 64.43 million new shares and 15 million shares will be made available for the open market at an issue price of 95 sen per share.
Cheng said the group plans to expand its market and customer base overseas, particularly to Myanmar, Bangladesh and China, within 24 months after the listing.
Yenher currently exports its products to 11 countries, including Indonesia, Hong Kong, Brunei, Belgium, Pakistan, South Korea, Nigeria, Thailand and Vietnam.
The group has two manufacturing plants, an in-house lab for research and development with about 140 employees in Penang.
It also has a branch in Taichung, Taiwan and has appointed a distributor in South Korea and Pakistan each in 2020.
Cheng said the group does not see any significant impact of the Movement Control Order on its food industry businesses.
Source: The Malaysian Reserve