DXN Holdings Bhd, the soon-to-be-listed home-grown cultivator, producer and marketer of ganoderma lucidium (Lingzhi mushroom) products, expects to expand into the United States, the Middle East and Europe by 2005.
As a stepping-stone to penetrate the US market, the group recently established a branch in Canada and a subsidiary in Mexico. It also targets to increase the number of major stockists in the United States to 80 by 2004 and 100 by 2005.
A press release issued in conjunction with the launch of its prospectus yesterday said that to tap the Middle East market, the group, which now has five stockists in the United Arab Emirates, intends to establish a stockist in Cyprus. It also plans to establish 10 stockists in Europe by 2004 and 30 by 2005.
The group, which recorded a turnover of RM132mil for its last financial year ended Feb 28, has expanded its business into more than 20 countries including the Philippines, India, Indonesia, Singapore and Thailand. Its export market contributed over 80% to total sales with the Philippines being the largest overseas contributor.
Ganoderma is currently being cultivated and processed into health food supplements, beverages and personal-care products at DXN's farm in Bukit Wang in Jitra, Kedah. DXN also has two other manufacturing sites in India and Indonesia.
For its flotation on the KLSE main board, it is making an offer for sale of 47.6 million ordinary shares of 25 sen each, of which 35.6 million are for institutional investors and 12 million for bumiputra investors.
There will also be a public issue of 10 million shares, of which 1.2 million will be offered to the public and the balance 8.8 million reserved for directors, employees, distributors and suppliers of DXN and its subsidiaries.
The group expects to raise RM28.6mil from its listing.
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