YX Precious Metal to raise funds for automation drive

by NURUL SUHAIDI / pic source: TOMEI FB

YX PRECIOUS Metal Bhd, a wholesaler and manufacturer specialising in gold jewellery, aims to raise RM31.26 million from its IPO on the ACE Market of Bursa Malaysia.

The IPO exercise will comprise a public issue of 111.65 million new shares, representing 30% of YX Precious Metal’s enlarged issued share capital, at an issue price of 28 sen per share.

Out of the target RM31.26 million, 22.07% or RM6.9 million has been earmarked for the purchase of new machinery and equipment as well as the upgrading of operational facilities, while 66.73% or RM20.86 million will be allocated towards working capital requirements.

YX Precious Metal MD Ng Sheau Chyn said the IPO exercise is timely as it will enable the company to take advantage of the surge in demand for gold jewellery over the past few years.

She added despite the current increase in the price of gold, demand remains high because people in the region still strongly view gold as an investment rather than just a spending, which makes this business sustainable.

“During the Covid-19 pandemic, our earnings were also not impacted negatively as customers were still buying gold,” she said.

“The price of gold has an influence on our margin as we sell at prevailing market prices,” she said at a media session today.

She added that customers, especially younger buyers, have a preference for more affordable and trendy hollow gold jewellery.

“Due to that, we will be expanding our product portfolio to introduce a new range of hollow gold jewellery to the market,” she added.

Upon listing, YX Precious Metal will be implementing more automation within its manufacturing processes to enhance operational efficiency and reduce the reliance on manual labour for certain processes.

“Our primary market remains Malaysia but we still have a market share of less than 10%. The local market will be our focus moving forward as we believe there is a significant opportunity to tap into,” she said.

YX Precious Metal is scheduled to be listed on the ACE Market of Bursa Securities on June 23. Applications for the public issue are open from today and will close on June 9.

Based on recent announcements, there have been eight listings on the local exchange to date with five in the pipeline (including YX Precious Metal).

YX Precious Metal will be the 13th listing on the local market and the 11th on the ACE Market this year.  

Upon its listing on the ACE Market, YX Precious Metal will have a market capitalisation of RM104.2 million based on the issue price of 28 sen per share and its enlarged issued share capital of 372.15 million shares.

YX Precious Metal is currently a 100% owned subsidiary of Tomei Consolidated Bhd, a company listed on the Main Market of Bursa Securities.