The largest IPO for 2020 was set at RM1.60 per share, group CEO Adrian Ong told a virtual press conference following the prospectus launch here today.
He said business remained resilient during the Covid-19 movement control order, hence offering opportunities for the group to revive the IPO.
For the first half ended June 30, the company’s sales stood at RM1.025 billion, compared with RM1.088 billion in the previous corresponding period.
For the full year in 2019, sales jumped to RM2.25 billion from RM1.77 billion in 2018.
The largest home improvement retailer in Malaysia, with an estimated market share of 29.1% in 2019, aims to increase the number of stores to 981 by next year from 674 at present.
It plans to open 307 over two years, comprising 200 Mr DIY, 47 Mr Toy and 60 Mr Dollar stores.
Of the total current outlets, four are in Brunei.
Mr DIY’s IPO comprises an offer for sale of up to 753.09 million existing shares and a public issue of 188.40 million new shares.
The retail offering comprises 161.53 million shares, of which 125.53 million shares will be available for application by the Malaysian public, and 36 million shares reserved for directors, employees and persons who have contributed to the success of the group.
The institutional offering is up to 779.96 million shares, of which 470.75 million shares are allocated to Bumiputera investors approved by the international trade and industry ministry (Miti).
The remaining 309.21 million shares will be allocated to Malaysian institutional and selected investors (other than Bumiputera investors approved by Miti), foreign institutional and selected investors outside the US and qualified institutional buyers in the US.
The IPO has received support from some of the world’s notable investors, including Aberdeen Standard, AIA, BlackRock, FIL Investment Management, JPMorgan Asset Management and Pictet Asset Management.
The cornerstone investors make up 76% of the institutional offering tranche, excluding shares offered to Bumiputera investors approved by Miti.
Mr DIY will raise about RM301.4 million from the public issue of 188.4 million new shares for the company, of which RM276.1 million will be used to repay bank borrowings.
On listing, its market capitalisation is projected to hit RM10 billion.
The company has also adopted a dividend policy that targets to return 40% of its earnings to shareholders.