MAIN Market listed tiles manufacturer and information technology company YB Ventures Bhd (formerly known as Yi-Lai Bhd) has obtained an approval from the Securities Commission (SC) to undertake the issuance of irredeemable convertible unsecured loan stocks (ICULS) as part of the company’s proposed rights issue exercise.
The exercise entails the listing of up to 1.21 billion ICULS on the basis of five ICULS at 4 sen each for every one existing ordinary share in YB Ventures held on an entitlement date to be determined later.
Under the maximum subscription level, the company will be able to raise RM48.5 mil of ICULS based on the issued share capital of 242.62 million.
“Our existing manufacturing facilities which comprise of eight production lines with a production capacity of approximately 7.12 million sq metres of ceramic, homogenous and porcelain tiles annually, are currently operating at its peak capacity, and it is imperative for us to work on the expansion strategy,” justified YB Ventures executive director Au Yee Boon.
“After deliberation with the management team, we decided to embark on this funding option as it enables the company to raise funds without incurring high-interest costs as in the case of borrowings from financial institutions where the 0.10% annual coupon payment on the nominal value of the ICULS is much lower than the base lending rate.”
The expansion cost to construct four new production lines is estimated at RM45.6 mil, while remainder of the proceeds raised will be utilised as working capital and expenses for the corporate exercise.
In April 2021, YB Ventures received a strong interest from the Real Estate & Housing Developers’ Association (REHDA) towards its new flagship product – the Talos Living Tiles – which is the first negative ion tiles launched in Malaysia.
According to Au, the launch of the Talos Living Tiles is a step-up for the group to move towards the premium segment.
Utilising YB Venture’s proprietary ground-breaking Nano Glazing technology, the coated tiles produces and releases negative ions into the air, hence improving indoor air quality and subsequently bring about a healing effect on the body.
Having invested millions of ringgit into the development and production of its Talos Living Tiles, Au is confident that the group will exceed its projected RM30 mil sales target based on positive feedback from property developers and end users.
At the close of today’s market trading, YB Venture was up 1 sen or 1.79% to 57 sen with 658,000 shares traded, thus valuing the company at RM152 mil. – May 27, 2021
