KUALA LUMPUR: YX Precious Metals Bhd (YXPM) is optimistic about its business prospects in 2022 due to the reopening of international borders and economic recovery, according to managing director Ng Sheau Chyn.(pic)

“We believe that everything is on track, in terms of our business targets for this year,” she told StarBiz recently.

The group, a subsidiary of Main Market-listed Tomei Consolidated Bhd, is involved in wholesaling, design and manufacturing of gold jewellery.

YXPM also offers other related products and services, including the sale of scrap and pure gold bars, the manufacture of silver chains and provision of refining services for precious metals.

Being a gold jewellery specialist, YXPM focuses on 916-gold jewellery and offers a wide range of gold jewellery, including gold chain products such as necklaces, bracelets, anklets and basic chains, as well as bangles, rings, pendants, charms and earrings.

YXPM, en route to be listed on the ACE Market on June 23, 2022, will have an enlarged share capital totalling 372.15 million shares and an issue price of 28 sen per share.

The initial public offering (IPO) prospectus noted that based on the diluted earnings per share of 1.91 sen for the financial year ended Dec 31, 2021, the price-to-earnings was 14.66 times. The group does not have a dividend policy.

Upon listing, the group will have a market capitalisation of RM104.2mil. Post-listing, Tomei’s stake in YXPM will drop to 70% from 100%.

YXPM aims to raise RM31.26mil from the IPO to fund its expansion plans, with 22.07% or RM6.9mil to buy new machinery and equipment as well as upgrading of operational facilities, while 66.73% or RM20.86mil is for working capital requirements. The remaining 11.2% or RM3.5mil is to defray listing expenses.

Ng said the group plans to expand its hollow gold jewellery product range.