DXN aims to raise RM121.6mil from IPO for repayment, working capital

(From left) CLSA Securities Malaysia head of investment banking Abang Rahmat Yusuf, CIMB Investment Bank group head of investment banking and deputy CEO Nor Masliza Sulaiman, DXN non-independent executive chairman and founder Datuk Lim Siow Jin, Maybank Investment Bank CEO Fad'l Mohamed and RHB Investment Bank managing director and CEO Ganesh Sabaratnam

KUALA LUMPUR: Main Market-bound DXN Holdings Bhd aims to raise about RM121.6mil from the public issue portion of its initial public offering (IPO), which will go towards the repayment of bank borrowings and working capital requirements.

At the launch of its IPO prospectus today, the wellness products company said the IPO will involve an offering of up to 932.68 million DXN shares, comprising an institutional offering of up to 772.68 million existing shares and a public issue of 160 million new shares.

The maximum IPO price is set at 76 sen per share with the final price to be determined via a bookbuilding exercise.

Of the institutional offering, 623.13 million shares will be allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), and 149.55 million shares will go to Malaysian and foreign institutional and selected investors.

The retail offering will comprise 60 million issue shares reserved for the directors and eligible employees of the DXN Group as well as persons who have contributed to the success of the DXN Group, and 100 million shares for application by the Malaysian public via balloting.

DXN said it has earmarked 65.8% or RM80mil of the proceeds of the public issue for the repayment of bank borrowings, 14.4% or RM17.7mil will be allocated for working capital requirements, especially the purchase of primary raw materials, and the remaining proceeds will be used to defray the listing fees and expenses.

DNX non-independent executive chairman and founder Datuk Lim Siow Jin said the group is poised for its next stage of growth through the listing.

"With over 3.6 million active members and revenue of over RM1.2bil, we aim to continue our growth trajectory by expanding our presence in existing and new markets," he said.

Maybank Investment Bank Bhd is the principal adviser of the IPO, as well as joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter.

CIMB Investment Bank Bhd is joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter.

CLSA Limited and CLSA Securities Malaysia Sdn Bhd are joint global coordinators and joint bookrunners for the IPO whereas RHB Investment Bank Bhd is a joint bookrunner and joint underwriter.