KUALA LUMPUR, July 15: Yenher Holdings Bhd debuted on Bursa Malaysia’s Main Market at a price of 99.5 sen, a 4.74 percent premium to its initial public offering (IPO) price of 95 sen. This year’s third IPO on the Main Market is a company that makes animal health and nutrition products.
Its stock rose to a high of RM1 this morning, but fell to a low of 87.5 sen during the first hour of trade.
At the noon break, the stock was trading at 94 sen. During the morning trading session on Bursa, Yenher was the ninth most actively traded stock.
Its trading volume was 53.73 million shares, approximately half of the 106.9 million shares tendered in the initial public offering.
The company raised RM61.2 million through the RM3.8 million IPO exercise.
Yenher has set aside RM31 million for the construction of a new GMP-compliant production facility, RM9.7 million for the acquisition of new machinery and equipment, and RM16.71 million for working capital.
Cheng Mooh Tat, Yenher’s group managing director, said the IPO exercise has offered the company better access to the financial market for future business expansions.
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.
“We’ll also keep researching, developing, and introducing new goods to expand our product line and fulfill the evolving needs of the livestock business.”
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 company’s initial public offering (IPO) of 106.9 million shares was heavily oversubscribed, with the public component of the offering being oversubscribed by 13.8 times. A total of 10,931 applications for 222.04 million shares had been received.
The IPO’s sole principle adviser, underwriter, and placement agent was RHB Investment Bank Bhd./n
