Yew Lee Pacific Group Berhad Debuts at RM0.285 on ACE Market

KUALA LUMPUR (7 Jun) – Yew Lee Pacific Group Berhad (Yew Lee), an established manufacturer principally involved in the manufacturing of industrial brushes as well as trading of industrial hardware and machinery parts, was successfully listed today on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities) with an opening price of RM0.285 sen per share, compared with the initial public offering (IPO) price of RM0.28 sen per share.

From left - Independent Non-Executive Director Andrea Huong, Lim See Tow and Andrew Yaw, Chief Operating Officer & Executive Director Ang Poh Yee,  Independent Non-Executive Chairman Mahdzir; Managing Director Mr. Ang Lee Leong; Executive Director Chee Wai Ying and Ang Lee Seng of Yew Lee Pacific Group Berhad; Managing Director of Corporate Finance Datuk Bill Tan and Deputy Head of Corporate Finance Danny Wong of M&A Securities Sdn. Bhd., and Financial Adviser Woon Soon Fai of Eco Asia Capital Advisory Sdn. Bhd.

Thanking the Securities Commission Malaysia, Bursa Securities, M&A Securities Sdn Bhd, Eco Asia Capital Advisory Sdn Bhd and other professionals involved in the IPO, Chairman of Yew Lee Mahdzir Bin Othman said, “I am extremely grateful to share this wonderful moment with the investors, customers and suppliers who have supported our humble company since its inception in 2004 as an industrial brush manufacturer. We are overwhelmed by the positive response and are very pleased with our debut on the ACE Market today.”

The Company is raising RM37.27 million from the IPO exercise. From the IPO proceeds, RM10.9 million would be used for the purchase of additional machinery and equipment, RM7.3 million for the construction of a new warehouse facility and office building in Pusing, Perak, RM1.8 million for renovation of new office in Klang Selangor, RM8.9 million for the repayment of bank borrowings, RM4.57 million for working capital requirements and RM3.8 million for the listing expenses.

Mahdzir also announced that Yew Lee will continue to strengthen their market position as one of the key industry players in the industrial brush industry in Malaysia. “We see this listing as an opportunity to realise our future plans and strategies, including expansion and upgrading of our production facilities as well as developing a range of customisable industrial brushes catering to a diverse customer base.”

From left - Deputy Head of Corporate Finance Mr. Danny Wong of M&A Securities Sdn. Bhd.; Executive Director Mr. Ang Lee Seng, Chief Operating Officer & Executive Director Ms. Ang Poh Yee, INED Mr. Andrew Yaw, Independent Non-Executive Chairman Mahdzir, Executive Director Ms. Chee Wai Ying, and Managing Director Mr. Ang Lee Leong of Yew Lee Pacific Group Berhad; and Bill Tan, Managing Director of Corporate Finance of M&A Securities Sdn. Bhd.

“As such, we have also allocated RM3.6 million from our IPO to make advance purchases on materials to support the increase in our manufacturing activities in tandem with the rise in demand of our range of brushes. This will improve our inventory and availability levels and shorten overall lead time for delivery. The purchase of additional machinery and equipment is also to automate production processes and reduce labour costs.”

Yew Lee currently has an estimated market share of 12.4% of the total size of the industrial brush industry in Malaysia of RM254.50 million in 2021, based on the Company’s revenue from the manufacturing of industrial brushes segment of RM31.60 million during the financial year ended 31 December 2021.

The Company plans to automate more of its operations to reduce dependency on labour and intends to expand market share in the trading of machinery parts in the central region of Peninsular Malaysia as well as have a bigger presence in Indonesia and Thailand through Yew Lee Indonesia and Yew Lee Thailand, both of which were established in 2019.

The Company recently declared a first interim dividend of RM0.003 sen per ordinary share in respect of financial year ending 31 December 2022 (FY2022) to be paid on 12 July 2022.

M&A Securities is the Principal Adviser, Sponsor, Underwriter and Placement Agent for Yew Lee’s IPO while Eco Asia Capital Advisory Sdn Bhd is the Financial Adviser for the IPO.