Supplement Maker DXN Invites Pitches for $300 Million IPO
(Bloomberg) -- DXN Holdings Bhd., a Malaysian health supplement producer, has asked banks for pitches for an initial public offering that could raise at least $300 million, people with knowledge of the matter said.
The company, backed by Southeast Asian private equity firm KV Asia Capital, could sell shares as soon as the end of this year, said the people. The supplement maker hasn’t decided on the listing venue with Malaysia, Singapore and Hong Kong among the potential options, said the people asking not to be named as the information is private.
DXN’s shareholders were working with an adviser last year to assess a potential sale of the company, seeking a valuation of about $1 billion, Bloomberg News previously reported. It was also exploring an IPO.
The firm sells capsules made from lingzhi mushrooms, touted in traditional Chinese medicine as having near-miraculous properties including promoting longevity, boosting immunity and treating conditions from liver disease to cancer. The company also distributes dietary supplements and food items like cordyceps coffee and spirulina cereal, as well as skin care products and cosmetics.
DXN, founded in 1993, uses a direct-selling model with more than 8 million registered distributors worldwide, according to its website. It was first listed on the Malaysian stock exchange in 2003 and was delisted in 2011 after a take-private offer from the founder. KV Asia bought a stake in DXN in 2017.
Details of the offering including size and timeline could change as deliberations are at an early stage, the people said. Representatives for KV Asia and DXN didn’t immediately respond to requests for comment.
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