[ad_1]
KUALA LUMPUR (Oct 26): MR DIY Group (M) Bhd made its Bursa Malaysia main market debut today.
At 9.28am, the home improvement retailer’s stock was trading at RM1.70 per share, which was a 6.25% or 10 sen premium over its opening price and initial public offering (IPO) of RM1.60 per share, giving the group a market capitalization of RM10.63 billion.
At the time of writing, it was also the top-traded counter on the local stock exchange, with some 168.14 million shares traded.
Speaking at a press conference following a virtual listing ceremony today, MR DIY Chief Executive Officer (CEO) Adrian Ong said the group had welcomed some 9,000 new shareholders to the firm.
“As a business [we] we are focused on what is important: managing our business and the growth we have set out to do.
“As you know, our business started this year with 593 stores; we have said that we will launch 307 new stores from 2020 to 2021, and that will bring us to 900 stores. We are very focused right now. The market is still doing well for us,” he said Ong.
With the listing of its business, which encompasses operations in Malaysia and Brunei, the group would add more stores in these markets, it said.
The primary focus is the growth of MR DIY stores, with the secondary growth engine being the MR DOLLAR and MR TOY store brands.
It noted that Malaysia had demonstrated high growth potential with a compound annual growth rate (CAGR) of 10.2% per year, and that the group is adding market share to that growth.
“To be honest, we feel very comfortable in that position and we think even startups would be very envious of that level of growth. We intend to focus on this and grow that market, ”he said.
MR DIY President Datuk Azlam Shah Alias said that the Malaysian market is growing, with high levels of urbanization and rising income levels.
“There is a culture of modernization in embracing the DIY culture among Malaysians,” Azlam said.
In terms of capital expenditures, Ong said the 307 new stores would be financed using the group’s “strong cash-generating capacity.”
He stressed that this ability would also provide enough cash flow to pay “sufficient dividends” to shareholders. The group’s dividend policy is 40% of its net earnings.
It has allocated RM438 million for the opening of the 307 new stores of the three brands.
[ad_2]
