Group managing director Cheng Mooh Tat said that backed by the huge population in developing countries like Myanmar and Bangladesh, there is an advantage for the group to improve the livestock production in those countries.
"Although there is some political uncertainty in Myanmar in the past few months, we are closely monitoring the situation and will continue to assess the conditions before entering the market," he said at a virtual press conference in conjunction with the company's prospectus launch today.
The group is principally involved in the manufacturing and distribution of animal health and nutrition products. It also provides value-added diagnostic and material analysis services as well as complimentary consulting services for its customers.
Cheng said replicating its experience and success in the local food industry for over 30 years and based on studies which show growing demand in livestock for the coming years, the group is optimistic that it would be able to compete in China as it also possesses the advantage in terms of communication in the Chinese market.
Currently, Yenher’s export sales to 11 countries including Indonesia, Hong Kong, Brunei, Belgium, Pakistan, South Korea, Nigeria, Thailand and Vietnam is about 10 per cent of total sales.
The group has two manufacturing plants, an in-house lab for research and development with about 140 employees based in Penang.
It has also established a branch in Taichung, Taiwan and appointed one distributor each in South Korea and Pakistan in 2020.
Meanwhile, the prospectus launch was in conjunction with Yenher’s initial public offering (IPO) of 106.19 million shares at an issue price of 95 sen per share.
The IPO comprises a public issue of 64.43 million new shares and an offer for sale of up to 41.76 million existing shares. Upon its listing on Bursa Malaysia, the market capitalisation of Yenher is estimated to be RM285 million.
The IPO exercise would raise RM61.21 million, of which RM31 million of the gross proceeds would be utilised for the construction of a new Good Manufacturing Practice (GMP)-compliant manufacturing plant, RM9.7 million for new machineries and equipment purchases, RM16.71 million for working capital purposes and the remaining RM3.8 million for listing expenses.
"The new manufacturing plant is expected to commence testing and commissioning in the first quarter of 2023 and to be fully operational in the fourth quarter of 2023," said Cheng.
With the completion of the new manufacturing plant and new machineries and equipment in place, the group would be able to increase its production capacity and be ready to meet the higher demand for its products.
"With this listing status, it will further enhance our profile, corporate image, increase our product brand awareness and widen our market reach. This no doubt will assist Yenher to attract new customers and expand our customer base," he added. - Bernama