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Mr DIY to issue 941.5mil new, existing shares under IPO

KUALA LUMPUR: Mr DIY Group (M) Bhd says it will issue 941.49 million new and existing shares under its proposed listing on Bursa Malaysia’s Main Market.

Mr DIY reportedly aimed to raise about US$500 million (RM2.1 billion) from the listing.

The listing plan was postponed twice, late last year and in the first half of this year, due to the MCO.

Mr DIY said it would be offering 470.75 million IPO (initial public offering) shares to Bumiputera investors approved by the Ministry of International Trade and Industry.

It will also offer 309.21 million existing shares to local institutional and selected investors, foreign institutional and selected investors outside the US and qualified institutional buyers in the US.

There is also a retail offering of 36 million new shares to directors and employees of the company as well as eligible individuals who have contributed to Mr DIY’s success, and 125.53 million new shares to the public.

Since the incorporation of the group’s first store in 2005, Mr DIY has grown to become the largest home improvement retailer in Malaysia.

Mr DIY had an estimated market share of 29.1 per cent in 2019 based on its revenue for the financial year ended December 31 2019.

As at September 6 this year, the group operated 640 stores across Malaysia and four stores in Brunei under the Mr DIY brand, with a further 28 stores in Peninsular Malaysia under the “MR. TOY” brand.

In August, the group developed and launched a new concept store called “MR. DOLLAR”.

It caters to consumer demand for food and beverage items, and essential household products, for the mass market, with all products at fixed price points of either RM2.00 or RM5.00.

Speaking at the underwriting of the IPO shares today, chief executive officer Adrian Ong said the event was a milestone for Mr DIY, bringing it one step closer to becoming a publicly listed company.

Ong said although markets had been severely impacted by the Covid-19 pandemic over the past few months, the group had persevered as a group and were pleased to have the opportunity to embark on its next phase of growth.

“Tapping into the capital markets will help accelerate our growth plans, as we continue to scale our store network to capitalise on the underpenetrated home improvement retail sector in Malaysia.

“This should further entrench Mr DIY’s position as Malaysia’s largest home improvement retailer,” he said.

Mr DIY signed an underwriting agreement with CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, RHB Investment Bank Bhd, AmInvestment Bank Bhd, Hong Leong Investment Bank BHd and Kenanga Investment Bank Bhd.

CIMB IB, Maybank IB and RHB IB are the joint managing underwriters and joint underwriters while AmInvestment, Hong Leong IB and Kenanga IB are the joint underwriters for this IPO exercise.

CIMB IB and Maybank IB are also the joint principal advisers, joint global coordinators and joint bookrunners, while RHB IB is also the joint global coordinator and joint bookrunner.

Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse (Singapore) Ltd, J.P. Morgan Securities plc and JPMorgan Securities (Malaysia) Sdn Bhd are the joint global coordinators and joint bookrunners. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are the joint bookrunners.

Source: NST