MR DIY IPO shares oversubscribed

The home improvement retailer’s IPO involves the offer of up to 941.49 million shares, with institutional investors taking up 779.96 million shares and the remaining 161.53 million shares going to retail investors.

PETALING JAYA: The RM1.5bil initial public offering (IPO) of Main Market-bound MR DIY Group (M) Bhd has been oversubscribed by retail investors as well as Malaysian and foreign institutional funds by 3.91 times.

The home improvement retailer’s IPO involves the offer of up to 941.49 million shares, with institutional investors taking up 779.96 million shares and the remaining 161.53 million shares going to retail investors.

Tricor Investor & Issuing House Services Sdn Bhd said in a statement that the oversubscription for the institutional offering was 4.71 times.

It said MR DIY’s institutional offering received “significant interest from Malaysia, foreign and selected investors”.

Among the notable institutional investors in MR DIY’s IPO exercise are BlackRock, JPMorgan Asset Management, Aberdeen Standard, AIA, FIL Investment Management and Pictet Asset Management.

Cumulatively, these cornerstone investors account for 76% of the institutional offering tranche.

As for the retail offering, Tricor said applications for a total of 169.94 million issue shares with a value of RM271.9mil were received from the Malaysian public and eligible persons.

For context, eligible persons refer to employees of MR DIY and the individuals “who have contributed to the success of the group”.

“For the balloting in respect of the applications received from the Malaysian public, a total of 9,244 applications for 133.93 million issue shares with a value of RM214.29mil were received, representing an oversubscription of 0.07 times.

“The 36 million issue shares available for application by the eligible persons were fully subscribed, ” stated Tricor.

MR DIY’s IPO comprises a public issue of 188.4 million new shares and an offer for sale of 753.09 million existing shares at RM1.60 apiece. The group is slated for a listing on the Main Market of Bursa Malaysia on Oct 26.

CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are the joint principal advisers, joint global coordinators and joint bookrunners for the IPO.

The other joint global coordinators and joint bookrunners for the IPO are Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse (Singapore) Ltd, JP Morgan Securities (Malaysia) Sdn Bhd and JP Morgan Securities Plc and RHB Investment Bank Bhd.

The remaining joint bookrunners are UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch.

The joint managing underwriters and joint underwriters for the IPO are CIMB Investment, Maybank Investment and RHB Investment.

The remaining joint underwriters for the IPO are AmInvestment Bank Bhd, Hong Leong Investment Bank Bhd and Kenanga Investment Bank Bhd.