PETALING JAYA: MR DIY Group (M) Bhd is offering for sale 941.49 million new and existing shares under its initial public offering (IPO) as it seeks to list on the Main Market of Bursa Malaysia.
The listing had been postponed twice – late last year and in the first half of this year due to the Covid-19 movement control order.
In a statement, the home improvement retailer said the institutional offering comprised of 779.95 million shares and a retail offering of 161.53 million shares.
Of the institutional offering, it comprised of 470.74 million shares offered to approved bumiputra investors and 309.21 million existing shares to Malaysian institutional and selected investors, foreign institutional and selected investors outside the United States and qualified institutional buyers in the US.
The retail offering comprised of 36 million new shares to directors and employees and 125.53 million new shares to the Malaysian 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 with an estimated market share of 29.1% in 2019 based on its revenue for the financial year ended Dec 31,2019.
As at Sept 6, 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.
Yesterday, MR DIY signed an underwriting agreement with CIMB Investment Bank Bhd (CIMB IB), Maybank Investment Bank Bhd (Maybank IB), RHB Investment Bank Bhd (RHB IB) AmInvestment Bank Bhd, Hong Leong Investment Bank Bhd (Hong Leong IB) and Kenanga Investment Bank Bhd (Kenanga IB).
CIMB IB, Maybank IB and RHB IB are the joint managing underwriters and joint underwriters.
As for AmInvestment Bank, Hong Leong IB and Kenanga IB, they are the joint underwriters for this listing exercise.
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.
MR DIY’s chief executive officer Adrian Ong (pic below) described the underwriting as a major milestone for MR DIY and said it brought the firm one step closer to becoming a listed entity.
“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 under-penetrated home improvement retail sector in Malaysia. This should further entrench MR DIY’s position as Malaysia’s largest home improvement retailer.”
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.
CIMB IB CEO Jefferi M Hashim said, “CIMB is proud to be part of MR DIY’s listing on the Main Market of Bursa Malaysia.
“We believe MR DIY has a competitive edge and a firm stronghold in the Malaysian home improvement retail sector.”
Maybank IB 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 DIY’s unique positioning in the retail sector coupled with its extensive product offering, ” he said.
RHB IB CEO Robert Huray said, “MR DIY’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 DIY’s IPO exercise.”