Retailer Mr DIY revives RM2.09bil listing plan

Extensive network: Customers shop at Mr DIY outlet in Kuala Lumpur. Mr DIY opened its first store in Malaysia in 2005 and now operates more than 622 outlets across the country.

KUALA LUMPUR: Mr DIY Group is reviving its initial public offering (IPO) plan after postponing it in March when the Covid-19 pandemic worsened, according to people with knowledge of the matter.

The country’s biggest home improvement retailer aimed to restart marketing to gauge investors’ interest next month, the people said. The company aimed to raise about US$500mil (RM2.09bil) in the share sale, which could begin as early as October, the people said, asking not to be named as the information is private.

Mr DIY’s sales surged to a record in May and June, after the government partially lifted coronavirus-driven restrictions in order to resuscitate the economy, the people said.

The share sale by the company, which is backed by private equity firm Creador, would be the biggest IPO in Malaysia since Lotte Chemical Titan Holding Bhd raked in US$849mil in 2017, according to data compiled by Bloomberg.

The potential deal will give a boost to the Malaysian stock market, which has only seen US$70.7mil worth of IPOs so far this year, the slowest in more than a decade. Despite the political turmoil in the country, the benchmark FTSE Bursa Malaysia KLCI Index has rebounded nearly 30% from its March low.

Deliberations on the plan are still ongoing and there is no certainty the company will proceed, said the people. Representatives for Creador and Mr DIY declined to comment.

Mr DIY opened its first store in Malaysia in 2005 and now operates more than 622 outlets across the country, according to its website. — Bloomberg