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Mr DIY weighs Malaysian IPO delay after political turmoil
[SINGAPORE] Mr DIY Group, Malaysia's biggest home improvement retailer, is considering postponing its planned initial public offering (IPO) after the country's equities market tumbled on political uncertainty, according to people familiar with the matter.
The company will finalise a decision on the share sale plan as soon as this week, said the people, who asked not to be identified as the discussions are private. The retailer initially planned to start the IPO at the end of this month, with a target to raise about US$500 million, the people said.
Malaysian stocks saw their 12-year bull run end last week on concern about the coronavirus outbreak and Mahathir Mohamad's surprise resignation. His move kicked off a week of horse-trading as rival camps jostled to fill the power vacuum. By Saturday, the king had appointed Muhyiddin Yassin as prime minister. Dr Mahathir said he has the support of enough lawmakers to form a majority government and is planning an urgent confidence vote in parliament.
Mr DIY could still revive its share sale plan as deliberations are ongoing and if market conditions improve, the people said. A representative for Mr DIY didn't immediately respond to requests for comment.
Mr DIY, which opened its first store in Malaysia in 2005, runs more than 588 outlets across the country, according to its website. The company sells over 14,000 types of products in ten categories including furnitures, computer accessories, household and toys. It counts Tesco Plc and Aeon Co among its business partners.