KUALA LUMPUR: Yew Lee Pacific Group Bhd has launched its prospectus for an initial public offering (IPO) for a listing on the ACE Market of Bursa Malaysia.

       “To maintain sustainable growth and create long-term shareholder value, we have plans to expand manufacturing capacity and increase automation which the proceeds from the IPO enables us to implement.

       "We are also constructing warehouse and office facilities as the current facilities are needed for the expansion of the Group's manufacturing activities and also to cater for future business growth,” said Yew Lee managing director Ang Lee Leong in a statement.

       The company will issue 133.1 million new shares at 28 sen a share and make an offer for sale of 26.62 million existing shares by way of private placement.

       Of the new shares issue, 26.62 million shares will be made available to the Malaysian public, 15.97 million allocated for application by eligible directors and employees and 23.96 million shares to be privately placed with selected investors.

       There will also be a private placement of 66.55 million new shares to bumiputera investors.

       The IPO is expected to raise gross proceeds of RM37.27mil, which includes RM10.9mil for the purchase of machinery and equipment, RM7.3mil for the construction of a warehousing facility and office buildings, RM1.8mil for office building renovations and the remainder for the repayment of bank borrowings, working capital and listing expenses.

       Yew Lee Pacific Group produces industrial and technical brushes for various manufacturing 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, 2021, 76.8% of the group’s total revenue was mainly derived from Malaysia while the remaining 23.2% was derived from the overseas market primarily located in Thailand, Vietnam, Indonesia and Taiwan, representing about 7%, 5.8%, 3.3% and 5.8% respectively.