ACE MARKET-bound gold jewellery wholesaler and manufacturer YX Precious Metals Bhd (YXPM) expects its transition to a listed entity will enable the company to maintain its growth trajectory while embarking on its expansion phase.
YXPM is currently a 100% owned subsidiary of Tomei Consolidated Bhd which is listed on the Main Market of Bursa Malaysia.
The company today inked an underwriting agreement with Public Investment Bank Bhd (PIVB) in conjunction with its upcoming initial public offering (IPO). YXPM is slated to list on the ACE Market by end-June this year.
The IPO exercise entails the public issue of 111.65 million new ordinary shares in YXPM, of which PIVB has agreed to underwrite 48.38 million shares.
The 111.65 million new shares will be allotted and allocated as follows:
- 18.61 million shares for application by the Malaysian public via balloting;
- 11.16 million shares for application by eligible directors and employees of YXPM, directors and employees of Tomei and its subsidiaries, and individuals who have contributed to the success of YXPM and its subsidiaries;
- 18.61 million shares will be made available for application by all entitled shareholders of Tomei;
- 16.75 million shares for private placement to selected investors; and
- 46.52 million shares for private placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry.
“The signing of the agreement comes at an opportune time as the group is ready to leverage on the increased demand for gold jewellery products,” commented YXPM’s managing director Ng Sheau Chyn.
“We plan to utilise the proceeds raised from the IPO exercise to purchase new machinery and equipment as well as upgrade our existing operational facilities to enhance our operational efficiency.”
YXPM currently focuses on 916-gold jewellery and offers a wide range of gold jewellery including gold chain products such as necklaces, bracelets, anklets and basic chains, as well as bangles, rings, pendants, charms and earrings.
The company mainly serves the Malaysian market as well as exports its products to foreign countries which include Germany, Hong Kong, Indonesia, Myanmar and Singapore. Its customers are mainly trade customers or intermediaries, such as retailers and wholesalers, as well as jewellery manufacturers. – April 21, 2022
