DXN Bhd IPO Review – DXN Holdings Bhd is coming up again with an initial public offering (IPO) of RM 3.8 billion. “One of the main reasons DXN is coming back to the market is because it will help its growth plans and give assurance to stakeholders”. – Teoh Hang Ching
DXN Bhd IPO Review
DXN Holdings IPO will be listed on the Malaysian stock exchange on May 19, 2023. This is one of the largest listings in recent times in Malaysia. The estimated market value of this company is around RM3.8 billion. DXN IPO comprises a public issuance of 160 million new shares or 3.21% of its enlarged share base of 4.99 billion shares, and an offer for sale of up to 772.68 million shares (15.5%).
Out of the total public issuance, 100 million shares will be made available to the Malaysian public, about 60 million shares will be available to eligible directors, employees. A total 623.13 million shares will be offered to Bumiputera investors under institutional offering, as approved by the Ministry of Investment, Trade and Industry. Around 149.55 million shares will be offered to institutional and selected investors.
Maybank Investment Bank Bhd (Maybank IB) is the IPO’s principal adviser, and serves as joint global coordinator with CIMB Investment Bank, CLSA Ltd and CLSA Securities Malaysia Sdn Bhd. Further joined by RHB Investment Bank Bhd, the five serve as joint book runners.
DXN Holdings IPO Key Details
- Principal Adviser of DXN Bhd IPO: Maybank Investment Bank Berhad
- Issuing House: Malaysian Issuing House (MIH)
- Shariah Status: SC (Yes)
- DXN IPO Listing Price: 76 sen per share
- Market Cap: 3.788 Billion
- Price to earning ratio: 15.6X
- Number of Shares: 4,985 Million
- DXN Holdings IPO consists of both fresh issue and offer for sale
- DXN IPO Closing Date: 09-May-2023
- DXN IPO Balloting Date: 11-May-2023
- DXN IPO Listing Date: 19-May-2023
Objective of the DXN IPO
- RM80 million or 65.8% has been earmarked for repayment of bank borrowings
- RM17.51 million (14.4%) will used for working capital
DXN Holdings BHD Business Description
DXN Holdings BHD is a multinational company based in Malaysia. The company specializes in the cultivation, processing, and marketing of health and wellness products produced using the Ganoderma mushroom. DXN Holdings Bhd is the investment holdings and management company of DXN Group.
DXN Holdings Bhd is founded in 1993 by Dato’ Dr. Lim Siow Jin, a graduate of the prestigious Indian Institute of Technology. DXN has become one of the world’s leading direct-selling companies in the health and wellness industry over this period. With a strong emphasis on quality, research, and development, DXN has gained recognition for its high-standard products. The company is global presence worldwide over 180 countries.
DXN Holdings Product Portfolio
DXN specializes in a wide range of health and wellness products. The flagship product of the company is Ganoderma-based items. Ganoderma, also known as the “King of Herbs,” is a medicinal mushroom with significant health benefits. DXN products can be categorized into Health and Dietary Supplements, Food and Beverages, Personal care and Cosmetics, and others. Some of its most popular products include DXN Lingzhi Coffee, DXN Spirulina, DXN Morinzhi, and DXN Ganozhi toothpaste.
DXN maintains strict quality control measures throughout its production processes to ensure the highest standards of safety, efficacy, and purity. DXN is an vertically integrated company. The company owns and operates its cultivation farms, employing organic farming methods and advanced technologies to cultivate Ganoderma mushrooms. DXN’s commitment to quality is further reinforced by its research and development initiatives. the company partners with renowned scientific institutions to explore the potential health benefits of Ganoderma and develop innovative products.
DXN Holdings Bhd Key Insights
- DXN offers you low-priced but high-quality products that generates high income.
- The first Direct Selling organization to implement the concept of “One World One Market”. With a single membership, you can do your business in any country in the world and enjoy the worldwide bonus.
- DXN’s products are developed in-house.
- Vertically integrated company from cultivation, manufacturing, marketing, as well as distribution.
- DXN is ranked No.15 under the Direct Selling News (DSN)’s Global ranking for the year 2018.
- Datuk Lim Siow Jin is the founder and executive chairman of DXN Holdings Bhd.
DXN Holdings’ unique Network Marketing model
DXN operates on a direct selling business model. This enables individuals to become independent distributors and promote DXN products. The company provides extensive training, marketing support, and a rewarding compensation plan to its network of distributors.
Global Presence: DXN has established a strong global presence with a wide distribution network spanning over 180 countries. The company operates subsidiaries and branch offices in numerous countries. This enables localized support, product distribution, and business development. DXN’s global expansion strategy has allowed it to reach a diverse customer base and create business opportunities worldwide.
DXN Holdings BHD is a reputable and innovative company that focuses on providing high-quality health and wellness products naturally. These products are derived from the Ganoderma mushroom and hence highly healthy. With over 14.9 million registered distributors worldwide, DXN is solidifying its position as one of the world leaders in Ganoderma products.
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We endeavor to help you to understand different aspects of a company before you invest in the company’s IPO. Learn all company insights for investment in new companies in the Indian share market in 2023. To know more information about company insights for investment, and business overview of investment companies, here are some suggested readings on company insights for investment –10 Best IPOs in 2022, Tata Motors Stock Price, Tesla Stock Price Prediction 2025, Highest Dividend-paying stocks, 5 best upcoming IPOs in India.