DXN Holdings Bhd's first appearance after 12 years on Bursa Malaysia seems to have failed to attract investors' attention.
In today's (Friday) trading session, DXN opened one sen lower than its initial public offering (IPO) price of 70 sen, at 69 sen.
Despite rising slightly to 70.5 sen about 10 minutes into the trading session, it retreated to trade lower at 66 sen as of 4pm this afternoon.
Despite this, executive chairman Lim Siow Jin predicts that the share price will improve in the next one to two weeks as foreign investors start buying the stock.
As a record, the group's IPO was oversubscribed 3.2 times.
DXN, which is involved in the sale of health and wellness-oriented consumer products, is targeting to raise RM112 million from the listing.
It is understood that the group has allocated a large portion, amounting to RM80 million (71.4%), for repayment of bank loans.
In addition, it also set RM7.9 million (7.1%) for working capital and another RM24.1 million (21.5%) for listing expenses.
For information, the company was previously listed on the Main Market in 2003, but was delisted in December 2011 after being privatized by founder Datuk Lim Siow Jin.
