HOME improvement retailer MR DIY Group opened the books for its RM1.5 bil initial public offering (IPO) today, the country’s largest listing in three years.
The company fixed the offer price at RM1.60 per share, giving it an estimated market capitalisation of RM10 bil. The bookbuild period will last seven working days, before pricing on Oct 14 and listing on Oct 26.
MR DIY joins a number of other Southeast Asian companies planning IPOs this year, including Thailand’s Siam Cement Group Packaging and Philippines’ Converge ICT Solutions Inc, a trend that signals an uptick in fundraising activity on the region’s underperforming markets.
The MR DIY listing is on track to be the largest in Malaysia since Lotte Chemical Titan raised RM3.77 bil in July 2017.
MR DIY is offering up to 941.5 million shares, representing around 15% of its enlarged issued share capital.
Of the institutional offering, 14 cornerstone investor groups will be acquiring 3.7% of the enlarged issued shares, a term sheet showed.
Reuters earlier reported that cornerstone investors included BlackRock Inc, AIA Group Ltd and J.P. Morgan Asset Management, citing sources.
Most of the IPO proceeds would be used for repayment of bank borrowings, the document said.
The value of Southeast Asian IPOs so far this year is US$4.6 bil (RM19.04 bil), up from US$3.1 bil (RM12.83 bil) a year ago, Refinitiv data shows, mainly due to US$3 bil (RM12.42 bil) raised by Thailand’s Central Retail in February. – Reuters
