DXN Signs Underwriting Agreement With Major Banks

DXN Holdings Bhd (DXN) has signed an underwriting agreement with Maybank Investment Bank Bhd, CIMB Investment Bank Bhd and RHB Investment Bank Bhd in conjunction with its proposed initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd.

DXN and its subsidiaries (DXN Group) are principally involved in the sales of health-oriented and wellness consumer products. It operates a vertically integrated supply chain with in-house research, cultivation and manufacturing functions across Malaysia, China, India, Indonesia and Mexico, and has over 300 stock keeping units of health-oriented and wellness consumer products that are manufactured in-house and distributed through its direct selling network or sales branches.

In conjunction with DXN’s IPO, Maybank Investment Bank Bhd, CIMB Investment Bank Bhd and RHB Investment Bank Bhd has agreed to underwrite the retail offering of 160,000,000 ordinary shares in DXN (Retail IPO Shares), representing approximately 3.2% of the enlarged issued ordinary shares in DXN. The Retail IPO Shares are to be offered in the following manner:

1/ 60,000,000 Retail IPO Shares are reserved for the directors and eligible employees of the DXN Group, and persons who have contributed to the success of the DXN Group; and

2/ 100,000,000 Retail IPO Shares are reserved for application by the Malaysian public via balloting.

DXN Non-Independent Executive Chairman and Founder Datuk Lim Siow Jin said, “The signing of the underwriting agreement marks a significant milestone for us ahead of our proposed listing on the Main Market of Bursa Malaysia Securities Bhd. Since we began operations, we have expanded our presence from being solely in the Malaysian market into international markets. 

We have a vast distribution footprint spanning across various global regions of Europe, Latin America, North America, Central Asia, South Asia, Southeast Asia, Middle East, Africa and Oceania and we are eyeing our next stage of growth as we aim to expand into new markets.”

SOURCE: Business Today