business

Yew Lee targets more than RM37mil from IPO

KUALA LUMPUR: Yew Lee Pacific Group Bhd aims to raise gross proceeds of RM37.27 million via its initial public offering (IPO) on Bursa Malaysia's ACE Market.

Managing director Ang Lee Loeng said to maintain sustainable growth and create long-term shareholder value, Yew Lee planned to expand its manufacturing capacity and increase automation.

"We are also constructing warehouse and office facilities. The current facilities are needed for the expansion of the company's manufacturing activities and also to cater for future business growth," said Ang Lee Leong in a statement.

According to Yew Lee, proceeds from the IPO would mainly be used to buy machinery and equipment for RM10.9 million, repay bank borrowings (RM8.9 million) and build new warehouse facilities and office buildings (RM7.3 million).

The proceeds will also be used for the renovation of a new office with RM1.8 million allocated, and working capital requirements of RM4.57 million, while the remainder is for the listing expenses estimated at RM3.8 million.

Yew Lee will issue 133.1 million new shares at 28 sen each and make an offer for sale of 26.62 million existing shares by way of private placement.

Of the new shares issue, 26.62 million shares will be made available to the public, 15.97 million for application by eligible directors and employees, and 23.96 million shares to be privately placed with selected investors.

"There will also be a private placement of 66.55 million new shares to Bumiputera investors," it added.

Yew Lee 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.

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