Yew Lee Pacific Group Berhad Launches Prospectus for ACE Market IPO

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Ipoh-based industrial brush manufacturer to raise RM37.27 million from listing

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.

MR. LEE YOKE WAH, Associate Director of Corporate Finance, M&A Securities; MR. GARY TING, Head of Corporate Finance; MS. ANG POH YEE, Chief Operating Officer & Executive Director, YLPG; DATUK BILL TAN, Managing Director of Corporate Finance, M&A Securities; EN. MAHDZIR BIN OTHMAN, Independent Non-Executive Chairman, YLPG; MR. ANG LEE LEONG, Managing Director; MR. DANNY WONG, Deputy Head of Corporate Finance, M&A Securities; MR. KELVIN KHOO, Managing Director, Eco Asia Capital Advisory [L-R]

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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