KUALA LUMPUR (July 15): Yenher Holdings Bhd made its debut on the Main Market of Bursa Malaysia at an opening price of 99.5 sen, a 4.74% premium over its initial public offering (IPO) price of 95 sen.
The animal health and nutrition product manufacturer is the third IPO on the Main Market this year.
Its share price climbed to a high of RM1 this morning but soon pared gains to a low of 87.5 sen within the first trading hour.
The stock closed at 94 sen at the noon break. Yenher was the seventh counter among the most actively traded stocks on Bursa in the morning trading session.
Its trading volume was at 53.73 million shares, equivalent to half of the 106.9 million shares offered for the IPO.
The company raised RM61.2 million from the listing exercise that cost it RM3.8 million.
Yenher has earmarked RM31 million for the construction of a new good manufacturing practice (GMP)-compliant manufacturing plant, RM9.7 million for purchases of new machinery and equipment while RM16.71 million will be for working capital.
Yenher's group managing director Cheng Mooh Tat said the IPO exercise has given the group the opportunity to gain better access to the capital market for its business expansions.
Cheng said the group will continue to strengthen its presence in the domestic market by tapping into the growth of the local animal health and nutrition industry while exploring new markets to widen its global footprint.
"We will also continue to research, develop and introduce new products to strengthen our product portfolio and to meet the changing demands of the livestock industry."
Yenher is planning to expand its footprint into overseas markets such as Myanmar, Bangladesh and China, which have robust livestock industry and immerse opportunities.
"We aim for these three markets because of their population and big livestock sizes. We have been in the animal health and nutrition product industry for the past 30 years and we have got a significant market share within Malaysia.
"We are confident that we can get portions in those markets," said Yenher's deputy general manager of finance Lim Sek Yang at a virtual media briefing today.
Meanwhile, Cheng said that the company intends to adopt a dividend policy of a 40% payout ratio.
For the first quarter ended March 31, 2021, the group posted a net profit of RM4.94 million and a revenue of RM58.79 million, contributed by its manufacturing and distribution activities.
The company's IPO of 106.9 million shares was oversubscribed, with the public portion of the listing oversubscribed by 13.8 times. It had received a total of 10,931 applications for 222.04 million shares.
RHB Investment Bank Bhd was the sole principal adviser, sole underwriter and sole placement agent for the IPO.