DXN said 12,146 applications for 420.12 million new shares were received for the 100 million shares made available to the Malaysian public.

Meanwhile, a total of 4,765 applications for 92.93 million new shares were received under the foreign institutional and selected investors portion, representing an oversubscription rate of 0.86 times.

The non-Bumiputera portion received 7,381 applications for the 327.19 million new shares, making for an oversubscription rate of 5.54 times.

DXN also said the 60 million issued shares made available for application by directors of DXN, eligible employees, and persons who have contributed to its success have been fully subscribed.

The group hopes to raise RM121.6 million from the exercise. Under the IPO, a total of 932.7 million ordinary shares in DXN will be offered for sale. These comprise 772.68 million existing shares and a public issue of 160 million new shares.

Of the 772.68 million existing shares, which account for 15.5% of DXN’s enlarged share capital, 623.13 million shares will be offered to Bumiputera investors and the remaining 149.5 million shares to Malaysians as well as foreign institutional and selected investors.

The company said 65.8% of the proceeds from the IPO, which is expected to amount to RM80 million, will be used to repay bank borrowings. Another RM17.5 million, or 14.4% of the proceeds will be used for working capital while the remaining sum will be used to defray the cost of the IPO.

Joint bookrunners, Maybank Investment Bank Bhd and CIMB Investment Bank Bhd confirmed that the institutional offerings of 772.68 million shares offered to Malaysian and foreign institutional and selected investors, including Bumiputera investors approved by the investment, trade and industry ministry, have all been taken up.

Based on the enlarged issued shares of 4.99 billion post-IPO and the retail price of 70 sen per share, DXN’s expected market capitalisation will be RM3.49 billion.

DXN is an investment holding company engaged in the provision of management services. Through its subsidiaries, DXN is involved in the sales of health and wellness consumer products through a direct selling model.

Previously listed in 2003, it was subsequently delisted in December 2011 following a takeover and privatisation by its founder Lim Siow Jin.

While almost two thirds (65.8%) of the group’s funds are being used to repay debts, group CEO Teoh Hang Ching said the company is “cash-rich”, standing at a cash position of RM498 million.

Teoh said: “It (the IPO) is not really to raise funds, but to profile our company and build public relations in the market. This will allow us to compete with other key market players.”

Maybank Investment Bank is the principal adviser, managing underwriter and placement agent for the IPO.

The notices of allotment will be mailed to all successful applicants by May 19.