KUALA LUMPUR (Aug 18): Jeweller Tomei Consolidated Bhd has proposed to list four wholly-owned subsidiaries under a special purpose vehicle YX Precious Metals Bhd (YXPM) on the ACE Market of Bursa Malaysia.
The four subsidiaries are Yi Xing Goldsmith Sdn Bhd, Gemas Precious Metals Industries Sdn Bhd, Emas Assayer Sdn Bhd and GPM Refinery Sdn Bhd.
The four companies are involved in the precious metals business, in particular the wholesale, design and manufacturing, assaying services and refining services.
They have a combined audited net assets of RM52.1 million as at Dec 31, 2020, Tomei said.
As part of the listing exercise, YXPM will undertake a public issue of 111.65 million shares, representing 30% of its enlarged share capital.
This comprises 18.61 million new shares (5%) for the Malaysian public, 11.16 million (3%) for eligible directors and employees within Tomei Group and related persons, 18.61 million (5%) for entitled Tomei shareholders, with the balance 17% to be issued by way of private placements.
Tomei plans to use proceeds from the IPO for the purchase of new machinery and equipment, for operational expansions, and to supplement YXPM’s working capital.
“Upon completion of the proposed listing exercise, Tomei’s equity interest in YXPM will be diluted to 70%, from its existing equity interest of 100%.
“As a result, Tomei’s share of future earnings in the YXPM Group will be reduced accordingly,” it said.
Shares of Tomei slid half a sen or 0.54% to 92 sen today, valuing the group at RM127.51 million.