KUALA LUMPUR: Yenher Holdings Bhd made a steady debut on the Main Market of Bursa Malaysia on Thursday, opening at 99.5 sen or 4.5 sen above its offer price of 95 sen.
At 9.04am, it was trading at 97 sen, up two sen. There were 28.84 million shares done at prices ranging from 95 sen to RM1.
The FBM KLCI was up just 0.66 of a point or 0.04% to 1, 512.98. Turnover was 248.13 million shares valued at RM90.65mil. There were 192 gainers, 94 losers and 231 counters unchanged.
Its core activities are manufacturing and distribution of animal health and nutrition products, which include premixes, complete feed and formulated products, biotech animal feed ingredients, feed additives and animal products, veterinary pharmaceutical and vaccines, alongside raw materials and commodities.
The IPO raised about RM61.20mil from the issuance of 64.4 million new shares. Besides utilising 50.6% of the proceeds build a good manufacturing practice (GMP)-compliant manufacturing plant, 15.9% and 27.3% of the proceeds are to purchase machinery and equipment as well as working capital respectively.
Under the retail offering, a total of 15 million shares were made available for application by the Malaysian public.
A total of 10, 931 applications for 222.04 million shares were received from the public, representing an overall oversubscription rate of 13.80 times.
TA Securities Research said at the IPO price of 95 a share, Yenher is priced at a trailing price-to-earnings ratio (PER) of 12.2 times CY20 core earnings.
“We value the company at 15 times CY22 EPS, arriving at a fair value of RM1.25 a share, ” it said.
PublicInvest Research derived a fair value of RM1.19 based on a 15 times PE multiple to its FY22F EPS of 7.9 sen.
PublicInvest Research said Yenher’s growth will be dependent on the construction of a new GMP-compliant manufacturing plant, expansion of the business into new markets, and new product range.