KUALA LUMPUR: Health oriented and wellness consumer product manufacturer DXN Holdings Bhd has debuted on the Main Market of Bursa Malaysia Securities Bhd at RM0.69 with an opening volume of 12.71 million shares.
DXN Holdings has raised a total of RM112.0 million in proceeds through its retail offering.
Of the total proceeds raised, RM80.0 million has been allocated for the repayment of bank borrowings while RM7.9 million is earmarked for working capital requirements, mainly for the purchase of primary raw materials used to produce finished goods and primary packaging materials. Another RM24.1 million of the total proceeds raised will be utilised to defray fees and expenses for DXN’s initial public offering (IPO) and listing.
Speaking at the listing ceremony, DXN executive chairman and founder, Datuk Lim Siow Jin said, “As DXN embarks on this new journey, we believe this listing will open up new opportunities for our business, allowing us to further enhance our corporate visibility and access to new markets. This is a significant milestone for DXN, and we look forward to the many growth opportunities that will accompany it.”
DXN is planning to expand its business operations to five new markets within the next three to five years.
Lim stated that these five countries, located in Latin America and Africa, are Brazil, Argentina, Ghana, Niger , and Algeria.
“Our new branches in Brazil and Argentina are expected to be operational by the end of this year, while the other three countries within the next two to three years. We anticipate that it will take between three to five years to fully develop the potential in these five new markets. During that time, we hope to be fully prepared to enter the Chinese market as well,” he said.
Previously listed on the Main Market in 2003, it was delisted in December 2011 for the purpose of restructuring the company’s operations. Since privatisation, its revenue growth accelerated with a compound annual growth rate (CAGR) of 17.2%.
“We will continue to focus on delivering health-oriented and wellness consumer products to our customers around the world and provide returns to our shareholders in accordance with our target payout ratio of between 30%-50% of the profit attributable to the owners of DXN for each financial year on a consolidated basis,” Lim said.
Based on DXN’s enlarged issued ordinary shares of 4.99 billion and the opening price of RM0.69, DXN’s market capitalisation works out to be RM3.4 billion. DXN 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.
Maybank Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter for the IPO. CIMB Investment Bank Bhd is the joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter for the IPO.
CLSA Ltd and CLSA Securities Malaysia Sdn Bhd are the joint global coordinators and joint bookrunners for the IPO whereas RHB Investment Bank Bhd is the joint bookrunner and joint underwriter for the IPO.
