By BLOOMBERG

Mr DIY, Malaysia’s biggest home improvement retailer, is exploring an initial public offering (IPO) that could raise about US$500 million (RM2.05 billion), people with knowledge of the matter said.

The company has been interviewing potential underwriters as it considers a listing in Kuala Lumpur, according to the people.

Mr DIY is targeting a market value of about RM10 billion, the people said, asking not to be identified because the information is private.

Mr DIY, which is backed by private-equity (PE) firm Creador, could list as soon as the end of the year, the people said. It is considering including only its domestic operations in the listed vehicle, one of the people said.

Creador CEO Brahmal Vasudevan said by phone that Mr DIY is exploring an IPO and expects to make a decision in the next month.

Officials at Mr DIY didn’t immediately respond to an email and phone calls seeking comment.

Mr DIY joins other PE-backed firms in seeking to sell shares in Malaysia.

KFC restaurant operator QSR Brands (M) Holdings Sdn Bhd, which is backed by CVC Capital Partners, and Leong Hup International Bhd, a poultry producer part-owned by Affinity Equity Partners, have also been preparing to list in the domestic market.

Fundraising from first-time share sales in Malaysia fell about 90% last year to US$180 million, the lowest annual tally in at least a decade, data compiled by Bloomberg show.

Deliberations about a listing of Mr DIY are at an early stage, and details of the offering could change, the people said.

Mr DIY has over 500 outlets throughout Malaysia, one of the people said. It has more than 4,000 employees and serves over 78 million customer annually at its stores in the the South-East Asian nation, according to its website. — Bloomberg