KUALA LUMPUR: YX Precious Metals Bhd
(YXPM), a wholesaler and manufacturer specialising in gold jewellery, plans to raise RM31.26 million from its initial public offering (IPO) exercise to fund its expansion plans.
The company is en route to a listing on Bursa Malaysia's ACE Market on June 23, 2022.
In a statement today, YXPM, a 100-per cent owned subsidiary of Tomei Consolidated Bhd, said the IPO comprises a public issue of 111.65 million new shares, representing 30 per cent of YXPM’s enlarged issued share capital, at an issue price of RM0.28 per share.
"Of the total proceeds, 22.07 per cent or RM6.90 million has been earmarked for the purchase of new machinery and equipment as well as upgrading of operational facilities, while 66.73 per cent or RM20.86 million is allocated towards working capital requirements,” it said.
Meanwhile, the remaining 11.2 per cent or RM3.50 million would be used to defray listing expenses.
"Applications for the public issue are open from today and will close on June 9 at 5 pm,” it said.
Upon its listing on the ACE Market, YXPM would have a market capitalisation of RM104.20 million and an enlarged issued share capital of 372.15 million shares.
Managing director Ng Sheau Chyn said the listing exercise would allow the company to take advantage of the surge in demand for gold jewellery over the past few years by expanding its product portfolio with the introduction of a new range of hollow gold jewellery to the market.
"We will also be implementing more automation within our manufacturing processes to enhance operational efficiency and reduce the reliance on manual labour for certain processes," she said. - Bernama
