PETALING JAYA: DXN Holdings Bhd
, en route to a listing on the Main Market of Bursa Malaysia, is expected to see significant improvement in its revenue for the financial year 2023 (FY23).
In FY22, the global direct-selling company, which is involved in the selling of health-oriented and wellness consumer products, witnessed its group revenue soar 18.3% year-on-year (y-o-y) to RM1.24bil, driven by increased sales in Bolivia, Mexico, India, Peru and Morocco, as well as improvement in economic conditions.
Consequently, earnings before interest and tax soared 28.3% y-o-y to RM362.8mil, while core profit surged 26.8% y-o-y to RM242.9mil. The company is slated to be listed on the Main Market on May 19.
Moving forward, TA Research forecast the company’s revenue to improve significantly in FY23, underpinned by pent-up demand and the reopening of the economy.
“We expect the sales growth to normalise to mid-single digit in FY24 due to the diminishing low base effect and lower consumers’ purchasing power from inflation and higher borrowing costs. Sales growth should pick up momentum in FY25, as the group grows into five new markets globally by FY24.”
The initial public offering entails an issuance of up to 932.7 million shares, representing 18.7% of the group’s enlarged issued share capital.
Institutional offering of up to 772.7 million existing shares are offered at an issue price to be determined via bookbuilding, while the retail offering of 160 million new shares are offered at an issue price of 76 sen per share.
The estimated gross proceeds of RM121.6mil raised are expected to be utilised for the repayment of bank borrowings, working capital and defraying fees and estimated listing expenses. DXN’s competitive advantages over its peers include its diversified exposure to high growth markets and broad product portfolio.
