KUALA LUMPUR (April 21): Tomei Consolidated Bhd's wholly-owned precious metals arm YX Precious Metals Bhd (YXPM), en route to list on the ACE Market of Bursa Malaysia by the end of June, has signed an underwriting agreement with Public Investment Bank Bhd in conjunction with its upcoming initial public offering (IPO).
Public Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise.
The IPO exercise entails a public issue of 111.65 million new shares in YXPM, Tomei said in a filing with Bursa Malaysia on Thursday (April 21).
Under the agreement, Public Investment Bank will underwrite 48.38 million shares as part of the proposed public issue of the IPO.
Of the 48.38 million YXPM shares, 18.61 million shares or 5% of the enlarged issued share capital will be made available for application by the Malaysian public via balloting, 11.16 million or 3% of the enlarged issued share capital for application by eligible directors and employees, and 18.61 million shares or 5% of the enlarged issued share capital for shareholders of Tomei under the proposed restricted offering.
In a separate statement, YXPM managing director Ng Sheau Chyn said the signing of the agreement comes at an opportune time as the group is poised to leverage on the rising demand for gold jewellery products.
"By transitioning into a listed entity, we hope to maintain our growth trajectory to take us to the next expansion phase.
"We plan to utilise the proceeds raised from the IPO exercise to purchase new machinery and equipment as well as upgrade our existing operational facilities to enhance our operational efficiency," she added.
YXPM is principally involved in wholesaling, design and manufacturing of gold jewellery. YXPM also offers other related products and services including sale of scrap and pure gold bars, manufacture of silver chains, and provision of refining services for precious metals.