KUALA LUMPUR, 15 JULY: Yenher Holdings Bhd, a newly listed company, closed its first trading day at 90 sen, down five sen or 5.26 percent from its initial public offering (IPO) price of 95 sen. 61.83 million shares of the animal health and nutrition product producer changed hands in the third IPO on the Main Market this year, accounting for over 58 percent of the 106.9 million shares Yenher issued for the listing exercise.
The stock began trading at 99.5 sen, a 4.74 percent premium to its IPO price, and soared to a high of RM1, but then lost ground, falling to a low of 87.5 sen during the first hour of trade.
According to TA Securities Research, Yenher is priced at a trailing price-to-earnings ratio of 12.2 times its calendar year 2020 core earnings based on the offer price of 95 sen per share.
Yenher raised RM61.2 million from their RM3.8 million initial public offering.
The company has set aside RM31 million for the construction of a new GMP-compliant manufacturing plant, RM9.7 million for the acquisition of new gear and equipment, and RM16.71 million for working capital.
Cheng Mooh Tat, Yenher’s group managing director, who owns a 7.5 percent share in the company, said the IPO has offered the company better access to the financial market for its commercial operations.
Cheng stated that the company will continue to increase its domestic presence by capitalizing on the growth of the local animal health and nutrition business while also seeking new markets to expand its worldwide reach.
Yenher intends to grow its influence into international markets such as Myanmar, Bangladesh, and China, all of which have thriving livestock industries and potential.
“Because of their population and large cattle quantities, we target these three markets.” We’ve been in the animal health and nutrition product industry for over 30 years and have a sizable market share in Malaysia.
At a virtual media event today, Yenher’s deputy general manager of finance Lim Sek Yang said, “We are sure that we can gain sections in those marketplaces.”
Meanwhile, Cheng stated that the corporation wants to implement a dividend policy with a payout ratio of 40%.
The group’s production and distribution activities contributed to a net profit of RM4.94 million and revenue of RM58.79 million for the first quarter ended March 31, 2021.
The IPO’s sole principle adviser, underwriter, and placement agent was RHB Investment Bank Bhd.
Also read:Yenher makes its debut on the Bursa Main Market with a small premium./n
