MR D.I.Y inks underwriting agreement enroute to IPO listing

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MR D.I.Y Group (M) Bhd, enroute to a listing on the Main Market of Bursa Malaysia Securities Bhd, has inked an underwriting agreement with four banks to be its Joint Managing Underwriters and Joint Underwriters.

It said CIMB Investment Bank (CIMB IB), Maybank Investment Bank (Maybank IB), RHB Investment Bank (RHB IB) will be take the role of the Joint Managing Underwriters and Joint Underwriters while Amnvestment Bank (AmInvestment), Hong Leong Investment Bank (Hong Leong IB) and Kenanga Investment Bank (Kenanga IB) will serve as Joint Underwriters for its initial public offering (IPO) exercise.

In a statement today, chief executive officer Adrian Ong said this event is a major milestone for the company, bringing it a step closer to becoming a publicly listed company.

“Although markets have been severely impacted by the COVID-19 pandemic over the past few months, we have persevered as a group and are pleased to have this opportunity to embark on our next phase of growth.

“Tapping into the capital markets will help us accelerate our growth plans, as we continue to scale our store network to capitalise on the underpenetrated home improvement retail sector in Malaysia. This should further entrench MR. D.I.Y.’s position as Malaysia’s largest home improvement retailer,” he said.

MR. D.I.Y.’s IPO offering comprised of 974.49 million new and existing ordinary shares.

This includes institutional offering of 779.96 million, comprising 470.75 million IPO shares to Bumiputera investors approved by the Ministry of International Trade and Industry and 309.21 million shares to  Malaysian institutional and selected investors, foreign institutional and selected investors outside the US and qualified institutional buyers in the US, it said.

The company said it is also allocating 161.53 million IPO shares to retail, comprising 36 million shares to directors, employees and persons who had contributed to MR. D.I.Y.’s success, as well as another 125.53 million to Malaysian public.

The group noted that since the incorporation of its first store in 2005, MR. D.I.Y. has grown to become the largest home improvement retailer in Malaysia with an estimated market share of 29.1 per cent in 2019 based on its revenue for financial year ended Dec 31, 2019.

As at Sept 6, it said the group operates 640 stores across Malaysia and four stores in Brunei under the “MR. D.I.Y.” brand, with a further 28 stores in Peninsular Malaysia under the “MR. TOY” brand.

It added that MR. D.I.Y.’s motto of “Always Low Prices” is represented by its comprehensive range of quality products at competitive prices, with approximately 16,600 stock keeping unit (SKUs) per store, as at June 30, 2020.