(From left) YX Precious Metals Bhd director Aw Ee Leng, director and Tomei Consolidated Bhd managing director Datuk Ng Yih Pyng, YX Precious Metals Bhd chairman Tan Sri Azlan Mohd Zainol, managing director Ng Sheau Chyn, together with directors Tang Yow Sai and Wong Phait Lee at the listing ceremony of YX Precious Metals Bhd on the ACE Market of Bursa Malaysia.
KUALA LUMPUR: YX Precious Metals Bhd
(YXPM) will use funds raised from going public to expand its product offerings and operations to increase its market share in the gold jewellery segment
YXPM managing director Ng Sheau Chyn said the company would expand its local operations and raise its current market share of 6.1% and 300 major customers this year.
“We are going to expand our hollow gold jewellery range because the market trend has been heading toward light-weight trendy designs, and gold prices have been sustaining at a steady price for now,” she said after the listing of the company on the ACE Market of Bursa Malaysia here yesterday
“We will also upgrade our operational facilities by automating some of the manufacturing processes and providing refining and essential services to our retail customers,” she pointed.
YXPM managing director Ng Sheau Chyn said the company would expand its local operations and raise its current market share of 6.1% and 300 major customers this year.
YXPM is principally involved in wholesaling, designing, and manufacturing of gold jewellery.
It aslo offers other related products and services including the sale of scrap and pure gold bars, manufacture of silver chains, and the provision of refining services for precious metals.
It is mainly involved in the wholesale business with domestic clients and those from Myanmar, Germany, Hong Kong, Indonesia and Singapore.
“YXPM’s revenue is derived from its existing and new customers but we are cautious about approaching new customers because we need to assess their credit risk,” Ng said.
The company raised RM31.26mil from its listing exercise, and will allocate RM6.9mil of the proceeds to expand its hollow gold jewellery range and improve operational efficiency. A total of RM20.86mil has been earmarked for working capital requirements to cater to future demand, while the remaining RM3.5mil will be used to defray listing expenses.YXPM’s share price debuted at 28 sen yesterday which is equal to the offer price.
The share price hit a high of 30.5 sen and low of 26.5 sen in intraday trade before closing at 27 sen for the day.
The company’s initial public offering (IPO) exercise entailed a public issue of 111.65 million new shares. The public portion of its share issue was oversubscribed by 26.36 times.
Upon its listing, the company’s market capitalisation stood at RM104.2mil, with an enlarged share capital of 372.2 million shares.
Tomei Consolidated Bhd will control 70% of YXPM post listing.
Public Investment Bank Bhd is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO exercise.
