BREAKING the convention by daring to embark on the road less travelled can sometimes exude the true value of a business.
Such description befits Penang-based animal health company Yenher Holdings Bhd which is en route for a listing on the Main Market of Bursa Malaysia.
The company which is principally involved in the manufacturing and distribution of animal health and nutrition products has recently received green light from the Securities Commission’s (SC) for its listing plan.
Two other listed players in the industry are Peterlabs Holdings Bhd and Rhone Ma Holdings Bhd.
Prospect-wise, it is interesting to know that here are four main processes within the animal health and nutrition component market, namely:
- Disease prevention and control: The usage of biologicals and biosecurity products such as disinfectants and vaccines to prevent the onset of diseases.
- Therapeutic treatment: The usage of veterinary pharmaceuticals which include antibiotics to mitigate the effects of disease outbreaks.
- Feed formulation: The process of determining the animal feed formula which includes the necessary amount of premixes and animal feed additives.
- Feed milling: The production of animal feed in bulk through mixing of macro-nutrients and micro ingredients including animal feed additives
Going forward, the animal health and nutrition industry in Malaysia is anticipated to remain resilient due to its continued dependency on the livestock industry.
According to a strategic analysis of the animal health and nutrition industry in Malaysia, furnished by the company to the Securities Commission, the animal health and nutrition industry in Malaysia is projected grow from RM2.17 bil in 2019 to RM2.71 bil in 2024, hence registering a compound annual growth rate (CAGR) of 4.6%.
Sense of optimism
Yenher’s initial public offering (IPO) exercise will entail a public issue of 64.43 new shares, of which 15 million shares will be made available for application by the Malaysian public.
Another 15 million shares are set aside for application by the eligible directors, employees and persons who have contributed to the success of the group while 34.43 million shares will be made available for application by Bumiputera investors.
Additionally, the IPO also comprises an offer for sale of up to 41.76 million shares where 3.07 million shares will be made available for application by Bumiputera investors while the remaining 38.69 million shares are reserved for other institutional and selected investors.
The 106.2 million ordinary shares in total represent 35.40% of the enlarged issued share capital of the company upon the listing.
The proceeds raised from the IPO exercise will substantially be earmarked for the construction of a new good manufacturing practice (GMP)-compliant manufacturing plant in order to increase its production capacity for its manufactured products, purchase of new machinery and equipment and for the group’s working capital purposes.
“We are optimistic that our expansion will go hand in hand with the listing, enhancing our financial position and our corporate profile which is in line with our objective of becoming a one-stop solution provider to our customers by offering them a wide range of animal health and nutrition products coupled with our value-added services, for their livestock,” added Yenher’s group managing director Cheng Mooh Tat.
RHB Investment Bank Bhd is the sole principal adviser, underwriter and placement agent for Yenher’s IPO and listing. – May 14, 2021
