DXN plans to raise RM28.6mil from IPO


  • Business
  • Tuesday, 19 Aug 2003

By IZWAN IDRIS

DXN Holdings Bhd expects to raise RM28.6mil from its listing on the the KLSE main board, scheduled for October this year. 

“Proceeds from the listing would be used to expand production facilities in Kedah and fund working capital needs,’’ executive chairman and chief operating officer Dr Lim Siow Jin said. 

Dr Lim Siow Jin

The floatation involves an offer for sale of 47.6 million shares and public issue of 10 million new shares of 25 sen each at an offer price of 63 per share. 

“We expect the prospectus to be available within the next few weeks,’’ Lim told reporters after the group's underwriting ceremony in Kuala Lumpur yesterday. 

Commerce International Merchant Banker Bhd is the lead manager and managing underwriter while Affin-UOB Securities Sdn Bhd is the co-underwriter. 

Kedah-based DXN is principally involved in the cultivation of Ganoderma Lucidium or Lingzhi, and the processing of these mushrooms into health food supplements, beverages and personal care products.  

The company also markets it own products through direct selling in over 20 countries.  

For the year ended Feb 28, 2003 DXN reported a net profit of RM17mil on revenue of RM132mil, an improvement compared to the previous year’s net profit of RM13mil on sales worth RM118mil. 

Export sales accounted for 82% of the total revenue for the financial year ended Feb, 2003. 

“We will focus on new markets like the Middle East, Europe and South America for future growth,’’ Lim said.  

Indonesia, the Philippines, India and the US are the group’s main markets after Malaysia. 

The group carries over 40 types of product with the Reishi Gano and Ganocelium being the main health food sold by the company. 

 Stock Watch On DXN

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