Supplement maker DXN picks banks for IPO

KUALA LUMPUR (Bloomberg): DXN Holdings Bhd, a Malaysian health supplement producer, has picked banks for an initial public offering in Kuala Lumpur that could raise about US$400mil (RM1.61bil), people with knowledge of the matter said.

The company, backed by Southeast Asian private equity firm KV Asia Capital, has chosen CIMB Group Holdings Bhd, Credit Suisse Group AG and Malayan Banking Bhd to help with the share sale, the people said.

An offering could take place as soon as the fourth quarter, said the people, who asked not to be identified as the information is private.

The mandates follow KV Asia’s approach inviting banks to submit pitches for the planned IPO, Bloomberg News reported last year.

Details of the listing including size and timeline could change, the people said. Representatives for Credit Suisse, CIMB and Maybank declined to comment. A representative for KV Asia did not respond to emails or phone calls seeking comment.

An offering would see DXN join companies such as logistics services provider Swift Group and gloves makers Harps Holdings Sdn Bhd and Smart Glove Corp in seeking to list in Malaysia this year.

Companies raised about US$487 million through first-time share sales in the Southeast Asian nation in 2020, up from US$458 million a year earlier, according to data compiled by Bloomberg.

DXN, founded in 1993, uses a direct-selling model with a network of more than 10 million registered distributors worldwide, according to its website. It was first listed on the Kuala Lumpur stock exchange in 2003 and was delisted in 2011 after a take-private offer from the founder. KV Asia acquired a stake in DXN in 2017.

The firm sells capsules made from lingzhi mushrooms, touted in traditional Chinese medicine as promoting longevity, boosting immunity and treating conditions from liver disease to cancer.

The company also distributes lingzhi-derived dietary supplements, food such as cordyceps coffee and spirulina cereal and skin care products and cosmetics.

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