KUALA LUMPUR: MR DIY Group (M) Bhd opens flat in its debut on Bursa Malaysia's Main Market today at its issue price of RM1.60, with 317,413 shares traded at 9am.
MR DIY's listing is Malaysia's largest initial public offering (IPO) in 2020 with a market capitalisation of RM10 billion and RM1.5 billion of proceeds raised from both institutional and retail investors.
The IPO is the largest in Malaysia since petrochemical group Lotte Chemical Titan Holding Bhd went public at an offer price of RM6.50, raising RM3.77 billion in 2017.
MR DIY chief executive officer Adrian Ong said it planned to expand to an aggregate of 900 stores by the end of 2021, as well as expand its new retail formats — MR. TOY and MR. DOLLAR — which had been well-received by the market.
"The company will also continue to offer attractive price-to-quality products, variety and convenience to our customers," Ong said at the virtual listing ceremony today.
He said the company had taken its promise of "Always Low Prices" to every single state in the country.
"From Selangor to Sabah, we have become a familiar and trusted brand for everyday home improvement essentials.
"The experiences of the past 15 years, and especially 2020, have given us the added conviction that our brand is not just one that Malaysians want in good times, but a reliable brand they can turn to in challenging times; a brand that allows them to stretch their ringgit further, without compromising quality.
"MR DIY is a brand for all times, and for all seasons. And this listing, the largest in Malaysia in three years, is testament to the fact that our fellow Malaysians remain confident that there is growth, value, and positivity in our economic markets today," he said.
This year alone, MR DIY has opened 81 stores and grown its store network by 13.7 per cent.
From 2017 till 2019, MR DIY's revenue and net profit recorded a hefty compound annual growth rate (CAGR) of 36.1 per cent and 23 per cent respectively.
Ong said the global Covid-19 pandemic had demonstrated the resilience and effectiveness of MR DIY's business model, making a V-shaped recovery in May and June 2020, with an aggregate revenue 11.9 per cent higher as compared to the pre-Covid-19 period of January and February 2020.
MR DIY's IPO entailed 941.49 million shares comprising an offer for sale of up to 753.09 million existing shares and a public issue of 188.4 million new shares.
The IPO was oversubscribed by retail investors as well as Malaysian and foreign institutional funds by 3.91 times.
MR DIY has three brands with 674 stores across Malaysia and Brunei.
CIMB Investment Bank and Maybank Investment Bank were the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters of the listing exercise, with RHB Investment Bank as the joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter.