PETALING JAYA: YX Precious Metals Bhd (YXPM), a wholesaler and manufacturer specialising in gold jewellery, aims to raise RM31.26 million from its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
YXPM is currently a wholly-owned subsidiary of Main Market-listed Tomei Consolidated Bhd.
The IPO comprises 111.65 million new shares, or 30.00% of YXPM’s enlarged issued share capital, at 28 sen per share.
About 22.07% or RM6.90 million from the proceeds has been earmarked for purchase of new machinery and equipment as well as upgrading of operational facilities, while 66.73% or RM20.86 million is allocated towards working capital requirements. The remaining 11.20% or RM3.50 million is to defray listing expenses.
YXPM managing director Ng Sheau Chyn said the IPO exercise will allow the company to take advantage of the surge in demand for gold jewellery.
“We will be expanding our product portfolio to introduce a new range of hollow gold jewellery to the market. This is timely for us as global preference for gold jewellery has been shifting towards the more affordable and trendy hollow gold jewellery, particularly amongst the younger consumers,” Ng said in a statement in conjunction with its prospectus launch today.
Besides, Ng said YXPM will implement more automation within the manufacturing processes to enhance operational efficiency and reduce the reliance on manual labour.
Applications for the public issue are open from today and will close on June 9. YXPM is scheduled to be listed on the ACE Market on June 23, 2022 and will have a market capitalisation of RM104.20 million upon listing.
