ACE Market-bound YX Precious Metals inks underwriting agreement with Public Investment Bank

Ng Sheau Chyn, managing director of YX Precious Metals, and Lee Yo-Hunn, CEO of Public Investment Bank

KUALA LUMPUR: YX Precious Metals Bhd (YXPM) has signed an underwriting agreement with Public Investment Bank Bhd (PIVB) for its initial public offering on the ACE Market of Bursa Malaysia Securities Bhd.

YXPM, a wholesaler and manufacturer specialising in gold jewellery, is a wholly-owned subsidiary of Main Market-listed Tomei Consolidated Bhd and is scheduled for its own listing by end-June 2022.

PIVB is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise.

"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.

"By transitioning into a listed entity, we hope to maintain our growth trajectory to take us to the next expansion phase," said YXPM managing director Ng Sheau Chyn in a statement.

She added that the proceeds from the IPO will go towards purchasing new machinery and equipment as well as upgrading its existing operational facilities.

The IPO will entail the public issue of 111.65 million new shares in YXPM, of which which PIVB has agreed to underwrite 48.38 million shares.

According to YXPM, 18.61 million shares will be made available to the Malaysia public, 11.16 million shares to eligible directors and employees and 18.61 million shares to all entitled shareholders of Tomei.

Of the remaining shares, 16.75 million shares will be privately placed with selected investors and 46.52 million shares will be privately placed to selected Bumiputera investors.