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Main Market returnee DXN’s IPO oversubscribed by 3.2 times

11th May,

KUALA LUMPUR (May 11): DXN Holdings Bhd announced that its initial price offering (IPO) was oversubscribed by 3.20 times by the Malaysian public, ahead of its listing on the Main Market of Bursa Malaysia on May 19.

In a statement, the group said a total of 12,146 applications for 420.12 million new shares were received for the 100 million made available to the Malaysian public.

Meanwhile, a total of 4,765 applications for 92.93 million new shares were received, representing an oversubscription rate of 0.86 times.

On the other hand, for the non-Bumiputera portion, a total of 7,381 applications for 327.19 million new shares were received, representing an oversubscription rate of 5.54 times.

Additionally, “the 60 million issue shares made available for application by the directors of DXN, eligible employees of the group and persons who have contributed to the success of the group have been fully subscribed”, the group added.

As for the institutional offering, the joint bookrunners have confirmed that the 772.68 million shares offered to Malaysian and foreign institutional and selected investors, including Bumiputera investors approved by the Ministry of Investment, Trade and Industry, have all been taken up.

Under the listing exercise, DXN aims to raise RM121.6 million from its IPO of 160 million new shares at an issue price of 70 sen per share. Of the RM121.6 million raised, RM80 million or 65.8% has been earmarked for repayment of bank borrowings, followed by RM17.51 million (14.4%) for working capital, and RM24.09 million (19.8%) for listing expenses.

DXN is involved in sales of health-oriented and wellness consumer products. Previously listed on the Main Market in 2003, it was delisted in December 2011 after being privatised by founder Datuk Lim Siow Jin.

Principal adviser Maybank Investment Bank Bhd, together with CIMB Investment Bank Bhd, are the joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO.

Another joint underwriter is RHB Investment Bank Bhd, who is also a joint bookrunner for the IPO with CLSA Ltd and CLSA Securities Malaysia Sdn Bhd. The latter two are also joint global coordinators for the IPO.

The notices of allotment will be mailed to all successful applicants by May 19, the group added.