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KUALA LUMPUR / HONG KONG: Malaysian home improvement retailer MR DIY Group opened the books for its initial public offering (IPO) of 1.5 billion ringgit ($ 361.71 million) on Tuesday, the largest listing in the world. country in three years.
The company set the offering price at RM1.60 per share, giving it an estimated market capitalization of RM10 billion. The book creation period will last seven business days, before the price on October 14 and the listing on October 26.
MR DIY joins several other Southeast Asian companies planning IPOs this year, including Thailand’s Siam Cement Group Packaging and the Philippines’ Converge ICT Solutions Inc, a trend signaling an uptick in fundraising activity in underperforming markets. .
MR DIY’s list is on track to be Malaysia’s largest since Lotte Chemical Titan raised RM3.77 billion in July 2017.
Offering up to 941.5 million shares, representing about 15% of its expanded issued share capital, MR DIY said it planned to use the proceeds of the IPO primarily to pay off bank loans.
His prospectus featured more than a dozen key investors, including funds from BlackRock Inc, Matthews, Aberdeen Standard Investments and Fidelity Investments, as well as JPMorgan Asset Management, AIA Bhd and Affin Hwang Asset Management.
MR DIY, which has a market share of around 29% in Malaysia and 674 stores in its local market and Brunei, had originally planned to list in the second quarter of the year, but was delayed amid concerns about increasing the number of coronavirus cases.
Revenues grew 12% in May and June after a partial lockdown in Malaysia was lifted, CEO Adrian Ong said.
“In reviewing the performance of our business, the resilience of our business, continued growth, it clearly made sense for us to go back to market,” Ong said at a virtual press conference.
MR DIY plans to add 307 stores in the next two years, estimating that the home improvement retail sector will grow at a compound annual growth rate of 10.2% over the next four years.
The value of Southeast Asia IPOs so far this year is $ 4.6 billion, up from $ 3.1 billion a year ago, Refinitiv data shows, primarily due to the $ 3 billion raised by Central. Thailand Retail in February. – Reuters
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