KUALA LUMPUR: Yew Lee Pacific Group Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.

       The industrial brush manufacturer is undertaking an IPO with a public issue of 133.1 million shares and an offer of sale of 26.62 million shares to selected investors.

       Of the issue shares, 26.62 million will be made available to the Malaysian public, 15.97 million to eligible directors and employees, 23.96 million for private placement to selected investors and 66.55 million to Bumiputera investors.

       According to Yew Lee, M&A Securities will underwrite 42.59 million shares of the total proposed issue of shares to the Malaysia public and via pink forms.

       It said M&A Securities will also place out 90.51 million issue shares to selected investors and Bumiputera investors approved by the International Trade and Industry Ministry.

       “We are delighted to be working with M&A Securities on our IPO as this underwriting agreement marks the first stage of the path towards our eventual successful listing on the ACE Market of Bursa Securities.

       "This listing will help us to raise the capital needed for our expansion plans while at the same time, boost our brand visibility in the industrial brush industry,” said Yew Lee managing director Ang Lee Leong in a statement.

       Yew Lee manufactures industrial brushes for a variety of industries, including glove, industrial, electrical and electronic, industrial and commercial cleaning providers as well as glass and wood producers.

       For the financial year ended Dec 31, 2020, Malaysia contributed 81.4% to the company's total revenue, while Thailand contributed 6.7% and Vietnam, 6.2%.

       By industry, glove manufacturers contributed 88% to Yew Lee's revenue in FY20.