KUALA LUMPUR (June 8): DXN Holdings Bhd is offering up to 1.41 billion shares in an initial public offering (IPO) as it seeks to re-list on Bursa Malaysia’s Main Market, according to its prospectus exposure published on the Securities Commission Malaysia (SC) website on Wednesday (June 8).

The 1.41 billion shares — 25.1% of its enlarged issued share capital — comprise 1.25 billion new shares and an offer for sale of 160 million existing shares. The issue price as well as the opening and closing dates of the IPO have yet to be fixed.

DXN is an investment holding company engaged in provision of management services. Through its subsidiaries, DXN is involved in the sales of health and wellness consumer products through a direct selling model. Previously listed in 2003, it was subsequently delisted in December 2011 following a takeover and privatisation by its founder Datuk Dr Lim Siow Jin.  

Its direct selling network consists of members (including stockists) and external distribution agencies who exclusively carry its products to on-sell and distribute to other members and end-consumers, its prospectus exposure said.

“Our group’s other business activities that primarily serve to support our core business include conducting laboratory testing services for third parties, offering of lifestyle products and operating a café.

“Our top 10 markets in terms of revenue for FY Feb 28, 2021 are Peru, Mexico, India, Bolivia, Malaysia, Philippines, the Middle East, United States, Thailand and Colombia.

“Our group has sales branches in these top 10 markets except for the Middle East, where our group uses an external distribution agency structure,” it said.

Of the 1.25 billion new shares, a total of 623.13 million shares are allocated to Bumiputera investors approved by the Ministry of Industry and Trade (MITI), Malaysian institutional and selected investors (other than Bumiputera investors approved by the MITI) and foreign institutional and selected investors.

The offer shares of 160 million will be allocated to the directors of DXN, eligible employees of DXN and its subsidiaries, persons who have contributed to the success of the group and the Malaysian public.

Maybank Investment Bank Bhd is the principal adviser, managing underwriter and placement agent for the IPO.