IPO – Yoong Onn oversubscribed 12.6 times
Filed Under (Business News) by Webmaster on 15-12-2009
Tagged Under : IPO, Yoong Onn
Yoong Onn Corp Bhd, the first home linen player to float its shares on the Main Market of Bursa Malaysia, saw its shares being oversubscribed by 12.6 times.
The company received 4,832 applications for 81.54 million shares with a value of RM71.76 million.
Yoong Onn’s initial public offering (IPO) involves a public issue of 25.17 million new shares and an offer for sale of 25.23 million shares for 88 sen each.
Group chief executive officer Roland Chew Hon Foong said it is encouraged by the strong take-up rate and public support garnered, given the uncertain market sentiments.
The IPO will raise RM22.15 million in proceeds of which RM6 million is for its local and overseas expansion, RM9 million to repay bank borrowings, RM3.65 million for working capital and RM3.5 million for listing expenses.
For the past five years, the group has recorded a compounded annual growth rate of 17 per cent in revenue and 25 per cent in profit after tax.
In the year ended June 30 2009, it made a profit after tax of RM13.9 million on the back of RM130.1 million in revenue.
Yoong Onn, which will be listed on December 23 2009, trades brands like Jean Perry, Novelle and also operates retail outlets called Home’s Harmony and Home’s Warehouse.
