KUALA LUMPUR: MR. D.I.Y. Group (M) Bhd had on Thursday signed an underwriting agreement with several banks for its IPO which comprises of 941.49 million new and existing shares as it seeks to list on the Main Market of Bursa Malaysia Securities
The home improvement retailer said it had signed the agreement with CIMB Investment Bank (CIMB IB), Maybank Investment Bank (Maybank IB), RHB Investment Bank, (RHB IB) AmInvestment Bank, Hong Leong Investment Bank (Hong Leong IB) and Kenanga Investment Bank (Kenanga IB).
CIMB IB, Maybank IB, RHB IB are the joint managing underwriters and joint underwriters. AmInvestment Bank, Hong Leong IB and Kenanga IB are the joint underwriters for this IPO exercise.
It said the institutional offering of 779.95 million IPO shares comprises of 470.74 million shares to approved Bumiputera investors and 309.21 million existing shares to Malaysian institutional and selected investors, foreign institutional and selected investors outside the US and qualified institutional buyers in the US.
As for its retail offering of 161.53 million IPO shares, they comprise of 36 million new shares to directors and employees and 125.53 million new shares to the Malaysian public.
According to the statement, since the incorporation of the group’s first store in 2005, MR. D.I.Y. has grown to become the largest home improvement retailer in Malaysia with an estimated market share of 29.1% in 2019 based on its revenue for financial year ended Dec 31,2019.
As at Sept 6, the group operates 640 stores across Malaysia and four stores in Brunei under the “MR. D.I.Y.” brand, with a further 28 stores in Peninsular Malaysia under the “MR. TOY” brand.
The “MR. TOY” brand focuses on affordable toys and other products for children and babies.
In August, the Group developed and launched a new concept store called “MR. DOLLAR” catering 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.
“MR. DOLLAR, would further complement the group’s existing brand portfolio and widen the range of products carried by the group as a whole, ” it said.
MR. D.I.Y.’s chief executive officer Adrian Ong said, “This event is a major milestone for MR. D.I.Y. and brings us one step closer to becoming a publicly listed company.
“Although markets have been severely impacted by the Covid-19 pandemic over the past few months, we have persevered as a group and are pleased to have this opportunity to embark on our 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. D.I.Y.’s position as Malaysia’s largest home improvement retailer.”
CIMB Investment Bank CEO Jefferi M. Hashim said, “CIMB is proud to be part of MR. D.I.Y.’s listing on the Main Market of Bursa Malaysia.
“We believe MR. D.I.Y. has a competitive edge and a firm stronghold in the Malaysian home improvement retail sector, thanks to an experienced management team and strategically executed expansion plans. The positive response from the investors so far shows recognition of the company’s fundamentals and performance.”
Maybank Investment Bank CEO Fad'l Mohamed said the bank was proud to support homegrown companies to access the capital market.
“Despite challenging conditions, we have seen strong interest from investors, both local and foreign. This is testament to MR. D.I.Y.’s unique positioning in the retail sector coupled with its extensive product offering," he said.
RHB Bank Investment Bank CEO Robert Huray said, “MR. D.I.Y.’s IPO has received strong interest from institutional investors on the back of strong business fundamentals, historical performances and market leadership. RHB is pleased to play an integral role in MR. D.I.Y.’s IPO exercise.”
The statement said besides being joint managing underwriters and joint underwriters, 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.