BURSA Malaysia’s ACE Market will soon have another entrant in Yew Lee Pacific Group Bhd, a leading manufacturer of industrial brushes as well as trader of machinery parts and industrial hardware.
The Perak-based company inked an underwriting agreement with M&A Securities Sdn Bhd today for its upcoming initial public offering (IPO) that entails a public issue of 133.1 million shares and an offer for sale of 26.62 million shares to selected investors.
From the public issue, 26.62 million shares will be made available for application by the Malaysian public via balloting; 15.97 million shares will be allocated to the company’s eligible directors and employees (pink forms); another 23.96 million shares to be reserved for private placement to selected investors, and 66.55 million shares to be allocated via private placement for Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
Under the underwriting agreement, M&A Securities will underwrite 42.59 million shares of the total proposed issue of shares allocated to the Malaysian public and through pink forms.
M&A Securities will also place out 90.51 million issue shares to selected investors and Bumiputera investors approved by MITI.
“We are delighted to be working with M&A Securities on our IPO as this underwriting agreement marks the first stage of the path towards our eventual successful listing on the ACE Market of Bursa Securities,” commented Yew Lee managing director Ang Lee Leong.
“This listing will help us to raise the capital needed for our expansion plans while at the same time, boost our brand visibility in the industrial brush industry.”
M&A Securities’ managing director (corporate finance) Datuk Bill Tan said Yew Lee has solid experience and expertise in the production of industrial brushes with a history that goes back to the early 1990s.
“It has come far but we have no doubt that Yew Lee will build upon this listing to go even further and excel. We wish the company well as it enters a new stage in its growth.”
Yew Lee manufactures industrial brushes for a variety of industries, including glove, industrial, electrical and electronic, industrial and commercial cleaning providers as well as glass and wood producers.
For its financial year ended Dec 31, 2020 (FY2020), Malaysia contributed 81.4% of Yew Lee’s total revenue with Thailand contributing 6.7% and Vietnam (6.2%). By industry, glove manufacturers contributed 88% to the company’s revenue in FY2020. – April 11, 2022
