JAKARTA/SINGAPORE: The Indonesian arm of Malaysia-based home improvement retailer Mr DIY Group dropped in its stock market debut on Thursday after raising 4.16 trillion rupiah (US$257.6 million) in Indonesia's biggest listing in more than a year.
The market debut came against the backdrop of broad weakness in Asian stocks after the U.S. Federal Reserve cautioned it would ease the pace of rate cuts in the coming year. Bond yields rose and the dollar was perched near a two-year high on Thursday.
Shares of Daya Intiguna Yasa, the sister company of Mr DIY, opened at 1,550 rupiah, 6 per cent lower than its initial public offering price of 1,650 rupiah a share, before sliding as much as 24.8 per cent to 1,240 rupiah on the Jakarta stock exchange.
The stock recovered and is now 1.8 per cent lower at 1,620 rupiah a share, while the local benchmark stock index shed 1.53 per cent.
Daya Intiguna Yasa offered 10 per cent of its equity, or up to 2.52 billion shares, and planned to use the majority of the IPO proceeds to repay a bank loan, followed by launching more stores and for working capital, according to its IPO prospectus.
The company has more than 900 stores across Indonesia since opening its first in 2017, its website showed.
Its net profit surged 253 per cent to 534.22 billion rupiah in the first six months of this year from 151.19 billion rupiah in the same period a year ago, its prospectus showed.
Daya Intiguna Yasa's IPO was Indonesia's largest in more than a year, following Amman Mineral Internasional's listing in July 2023, according to data compiled by LSEG.
IPO proceeds raised in Indonesia, Southeast Asia's biggest economy, dropped 83 per cent to US$616.2 million this year from US$3.55 billion in 2023, LSEG data showed.
The drop came against the backdrop of Indonesia's elections and leadership transition this year.
CIMB Niaga Sekuritas and Mandiri Sekuritas are the IPO's underwriters.