Main Market-bound Dxn Prices Ipo At Maximum Rm0.76 Per Share

KUALA LUMPUR, April 28 -- DXN Holdings Bhd (DXN), a health-oriented and wellness consumer products company, launched its initial public offering (IPO) prospectus today with a proposed listing on Bursa Malaysia’s Main Market set for May 19, 2023.

In a statement today, DXN said the IPO exercise involved an offering of up to 932,675,000 ordinary, comprising an offer for sale of up to 772,675,000 existing shares (offer shares) and a public issue of 160,000,000 new shares (issue shares).

“The maximum IPO price is RM0.76 per share, with the final IPO price to be determined via a book-building exercise,” it said.

DXN said an institutional offering of up to 772,675,000 offer shares, representing up to 15.5 per cent of the enlarged issued shares, would comprise 623,125,000 offer shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry and up to 149,550,000 offer shares to Malaysian and foreign institutional and selected investors.

“A retail offering of 160,000,000 issue shares, representing 3.2 per cent of the enlarged issued shares comprising 60,000,000 issue shares reserved for the directors and eligible employees of the DXN Group, and persons who have contributed to the success of the DXN Group.

“100,000,000 issue shares are reserved for application by the Malaysian public via balloting,” it said.

DXN said 65.8 per cent or RM80 million of the public issue proceeds for the repayment of bank borrowings, 14.4 per cent or up to RM17.5 million has been budgeted for working capital requirements, mainly for the purchase of primary raw materials used to produce finished goods and primary packaging materials.

“The remaining will be utilised to defray the fees and expenses relating to the IPO and listing,” it said.

Based on the enlarged issued shares of 4,985,000,000 post-IPO and the retail price of RM0.76 per share, DXN’s expected market capitalisation is approximately RM3.8 billion.

Its non-independent executive chairman and founder, Datuk Lim Siow Jin, said that in the future, the company would have another cultivation facility and two manufacturing facilities in the pipeline. 

“Overall, DXN is poised for its next stage of growth through the listing.

“With over 3.6 million active members and revenue of over RM1.2 billion, we aim to continue our growth trajectory by expanding our presence in existing and new markets,” he said at the IPO prospectus launch at DXN Cyberville in Cyberjaya today.

DXN also planned to declare a yearly dividend with a target payout ratio of between 30-50 per cent of its profit attributable to its owners on a consolidated basis.

The retail offering commences today and closes on May 9, 2023, at 5 pm.

Maybank Investment Bank Bhd is the principal adviser, joint global coordinator, joint book runner, joint managing underwriter and joint underwriter, while CIMB Investment Bank Bhd is the joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter.

CLSA Ltd and CLSA Securities Malaysia Sdn Bhd are the joint global coordinators and joint bookrunners, whereas RHB Investment Bank Bhd is the joint bookrunner and joint underwriter.

-- BERNAMA