PETALING JAYA: Yenher Holdings Bhd made a steady debut on the Main Market of Bursa Malaysia despite the lacklustre market condition.

       The company’s share price opened at 99.5 sen, representing a 4.7% premium to its initial public offering (IPO) price of 95 sen.

       The animal health and nutrition product manufacturer, however, saw its share price close 5% lower to 90 sen with 61.5 million shares changing hands, making it one of the top active lists.

       Yenher’s group managing director Cheng Mooh Tat said that the listing of the company would open opportunities to tap into the capital market and utilise the proceeds for business expansion.

       “There is no good or bad time to go for an IPO. We are fully committed to realising our business strategies,” he said when asked about the current market situation.

       The animal health and nutrition product manufacturer, however, saw its share price close 5% lower to 90 sen with 61.5 million shares changing hands, making it one of the top active lists.

       For the IPO, Yenher has raised RM61.20mil from the issuance of 64.4 million shares. Besides utilising 50.6% of the proceeds to build a good manufacturing practice-compliant manufacturing plant, 15.9% and 27.3% of the proceeds are for the purchase of machinery as well as working capital respectively.

       Cheng said that Yenher, which is located in Penang, was not affected by the pandemic and has been running at 80% of the workforce during the current movement control order.

       Moving forward, he said, the group will continue with its business plan to expand its products and explore 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.

       “We are committed to delivering value to our shareholders.

       “We intend to recommend and distribute a dividend of at least 40% of our annual profit to our shareholders,” Cheng said.

       Yenher is also continuing to develop new in-house products including a probiotic additive, which is expected to be launched in September this year.

       Cheng pointed out that the group’s main business is in the production of animal health and nutrition products which are critical components of livestock feeds and the group is not affected by the rising commodity prices.

       “Going forward, the animal health and nutrition industry in Malaysia is projected to expand by a compounded annual growth rate of 4.3% from 2020 to 2025,” he said, quoting a report by independent market researcher Protege Associates Sdn Bhd.