Malaysian home improvement retailer Mr DIY is reportedly looking to list its Indonesian unit in Jakarta late this year or early 2025 .
According to a Bloomberg report, the retailer is already working with banks for an initial public offering (IPO) that could raise as much as $300 million.
Bloomberg’s sources, however, said deliberations are ongoing.
Mr DIY raised about $360 million in Malaysia’s largest IPO in 2020, drawing support from the world’s notable investors, including Aberdeen Standard, AIA, BlackRock, and JPMorgan Asset Management.
Last year, Malaysian private equity firm Creador made a complete exit from Mr DIY by selling its remaining 4.92% stake.
Mr DIY, whose group includes brands such as Mr DIY, Mr TOY, and Mr Dollar, has more than 3,500 stores across the region.
Mr DIY’s IPO in Jakarta could give a welcome boost to Indonesia’s lackluster IPO market. According to Bloomberg data, IPO proceeds in the country this year dropped 90% from the same period in 2023 to $317 million.
According to the report, the company will use the proceeds of the Indonesia IPO to expand its business.
Early this week, Mr DIY also filed with Thailand’s Securities and Exchange Commission for the IPO of its Thai unit.
The company opened its first store in Thailand in 2016. It now employs more than 9,700 people and served over 77 million customers in 2023 with 802 stores across the country.
Apart from Malaysia and Thailand, MR. D.I.Y. is also present in Brunei, Indonesia, Singapore, the Philippines, Cambodia, Vietnam, India, Turkey, Bangladesh, and Spain.
In 2023, the Indonesia Stock Exchange (IDX) hosted 80 IPOs, surpassing regional powerhouse Hong Kong, where only 73 companies listed their shares.
Indonesia continues to be the most active IPO market in Southeast Asia in 2024 as 20 companies were listed between Jan 1 and May 7, 2024, raising 2.6 trillion rupiah ($160 million).
The region, on the whole, saw a steady stream of 160 IPOs throughout 2023, up from 150 and 135 in 2022 and 2021, respectively, according to DealStreetAsia DATA VANTAGE‘s latest report SE Asia’s Public Markets: Resilience in Uncertain Times.
However, in line with global trends, funds raised from the initial share sales fell 19.8% year-on-year (YoY) to $5.8 billion in 2023.
