by S BIRRUNTHA / pic source: yxgroup.com.my

YX PRECIOUS Metals Bhd debuted on Bursa Malaysia Securities Bhd’s ACE Market today, opening at its issue price of 28 sen per share.

At the opening bell, the counter saw 4.82 million shares changing hands.

The gold jewellery wholesaler and manufacturer’s IPO exercise entails a public issue of 111.65 million new shares.  

Based on the issue price and the enlarged issued share capital of 327.15 million, the group has a market capitalisation of RM104.2 million.

With the listing, YX Precious Metals raised a total of RM31.26 million in proceeds, of which RM6.9 million or 22.07% of the total proceeds have been allocated to expand its hollow gold jewellery range and improve operational efficiency.

Another RM20.86 million or 66.73% have been earmarked for working capital requirements to cater for future demand, while the remaining RM3.5 million or 11.2% will be used to defray listing expenses.

YX Precious Metals independent non-executive chairman Tan Sri Azlan Mohd Zainol noted that the group’s shares have been oversubscribed by 26.36 times.

“This strong interest from the members of the public will give the group motivation to strive for better achievements in the coming years,” he said at the listing ceremony today. 

Meanwhile, YX Precious Metals MD Ng Sheau Chyn said the group is aiming to expand its local operations this year, increasing its current market share of 6.1% with about 300 retail customers to-date.

She added that the group is also looking to expand its hollow gold jewellery range because the market trend has been heading towards lighter-weight trendy designs and gold prices have been sustaining at a steady price for now.

“We will also upgrade our operational facilities by automating some of the manufacturing processes and provide refining and essential services to our retail customers,” she said.

Ng said YX Precious Metals, which is also a subsidiary of Tomei Consolidated Bhd, is planning to expand its local customer base which currently accounts for about 90% of its total customers.

However, it has no plan to increase its overseas market as of now.

Moving forward, Ng said YX Precious Metals is very cautious in approaching new customers as it needs to assess its credit risk, adding that the group’s increasing revenue comes from existing and new customers.

YX Precious Metals recorded a net profit of RM3.04 million and a revenue of RM60.73 million in its first quarter ended March 31, 2022, underpinned by the wholesale segment of gold jewellery.

The group mainly serves the Malaysian market as well as exports its products to foreign countries, including Germany, Hong Kong, Indonesia, Myanmar and Singapore.  

YX Precious Metals’ customers are mainly trade customers or intermediaries, such as retailers and wholesalers, as well as jewellery manufacturers.