DXN Unveils IPO Prospectus, Expects Market Cap Of RM3.8 Billion Post Listing

The Public Listing of DXN

DXN strives to ensure continuous growth and prosperity for its members by constantly developing. This spirit enabled DXN to be successfully relisted on Bursa Malaysia's main market on 19th May 2023, providing beneficial opportunities not only for DXN but also for all its members.

DXN IPO Prospectus Launch

The DXN IPO (Initial Public Offering) Prospectus Launch event was held on 28th April 2023 at DXN Cyberville. The event was attended by DXN's key management, directors, and staff, DXN Crown Ambassadors and DXN members from Malaysia and Overseas, officials and representatives from various banking and financial institutions, Bursa Malaysia officials, as well as members of the press.

DXN Unveils IPO Prospectus, Expects Market Cap Of RM3.8 Billion Post Listing

Main Market bound DXN Holdings Bhd which is involved in sales of health-oriented and wellness consumer products unveiled its initial public offering prospectus, which is set for 19 May 2023.

The IPO exercise involves an offering of up to 932,675,000 ordinary shares in DXN comprising an offer for sale of up to 772,675,000 existing Shares and a public issue of 160,000,000 new Shares. The maximum IPO price is RM0.76 per Share with the final IPO price to be determined via a book-building exercise.

The group will have an institutional offering of up to 772,675,000 Offer Shares, representing up to 15.5% of the enlarged issued Shares and up to 149,550,000 Offer Shares to Malaysian and foreign institutional and selected investors. While the retail offering is at 160,000,000 Issue Shares, representing 3.2% of the enlarged issued Shares.

The public issue is expected to raise approximately RM121.6 million of which the company has earmarked 65.8% or RM80 million of the public issue proceeds for the repayment of bank borrowings. Meanwhile, up to 14.4% 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 while the remaining public issue proceeds will be utilised to defray the fees and expenses relating to the IPO and listing.

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 works out to be approximately RM3.8 billion. DXN also intends to declare a yearly dividend with a target payout ratio of between 30%-50% of its profit attributable to its owners on a consolidated basis.

DXN’s Non-Independent Executive Chairman and Founder, Datuk Lim Siow Jin said, “I am incredibly excited to launch our prospectus today. Over the years, we have invested into 2 research facilities, 6 cultivation facilities and 10 manufacturing facilities which have allowed us to control the supply chain and be innovative in expanding our product offerings to meet constantly changing customer needs. Looking ahead, we have another cultivation facility and 2 manufacturing facilities in the pipeline. Overall, DXN is poised for its next stage of growth through listing on the Main Market of Bursa Malaysia Securities Berhad. 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.”

Maybank Investment Bank Berhad is the Principal Adviser, Joint Global Coordinator, Joint Bookrunner, Joint Managing Underwriter and Joint Underwriter for the IPO. CIMB Investment Bank Berhad is the Joint Global Coordinator, Joint Bookrunner, Joint Managing Underwriter and Joint Underwriter for the IPO. CLSA Limited and CLSA Securities Malaysia Sdn Bhd are the Joint Global Coordinators and Joint Bookrunners for the IPO whereas RHB Investment Bank Berhad is the Joint Bookrunner and Joint Underwriter for the IPO.

SOURCE: Business Today