Friday 29 Mar 2024
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KUALA LUMPUR (Oct 26): Yew Lee Pacific Group Bhd’s shares price rose as much as 2.5 sen or 8.77% to 31 sen in active trade on Wednesday (Oct 26) morning, after the group announced a planned bonus issue of warrants.

At the 12.30pm break, the industrial brush manufacturer pared gains but still was up 1.5 sen or 5.26% at 30 sen, giving it a market capitalisation of RM159.7 million.

Since its debut on the ACE Market on June 7, 2022, Yew Lee’s share price has gained two sen or 7.14% compared to its initial public offering price of 28 sen.

There were 19.08 million shares traded so far, making it one of the top 20 actively traded stocks on the local bourse on Wednesday morning.  

On Tuesday (Oct 25), Yew Lee proposed to undertake a bonus issue of warrants on a basis of one warrant for every two existing ordinary shares, on an entitlement date to be determined later.

The exercise entails the issuance of 266.22 million warrants, based on Yew Lee’s total issued share capital of RM67.53 million, comprising 532.4 million ordinary shares as of Oct 3 (latest practicable date, or LPD).

The exercise price of the warrants has been fixed at 28 sen, which represents a premium of approximately 9.67% to the five-day volume weighted average market price of the shares up to and including the last trading day immediately preceding the LPD of 25.53 sen.  

The gross proceeds to be raised upon full exercise of the warrants is RM74.54 million, wherein 60% of the proceeds will be used for the payment of operation overhead of the group, which include labour costs, utilities and other factory overhead expenses.

The remaining 40% of the proceeds will be allocated for purchase of raw materials, such as monofilament materials required for the manufacturing of industrial brushes business segment.

Incorporated in 1992 in Ipoh, Perak as a trader of industrial hardware and machinery parts, Yew Lee ventured into manufacturing custom-made industrial brushes in 2004. It now manufactures brushes in Perak, as well as in Padang Besar, Thailand and Medan, Indonesia. Its industrial hardware and machinery parts manufacturing is based in Ipoh and Klang, Selangor.

The glove industry contributed between 77% and 88% of the company’s top line growth between FY2018 and FY2021, with the remainder from other industries.

Yew Lee’s customers include Top Glove Corp Bhd, Hartalega Holdings Bhd, Careplus Group Bhd and Riverstone Holdings Ltd.

Edited BySurin Murugiah
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