You are here
Malaysia's Mr DIY recoups sharp early losses in market debut
[KUALA LUMPUR] Shares of Malaysian home improvement retailer Mr DIY Group briefly fell as much as 6.25 per cent in their market debut on Monday, but later rose above the IPO price, in what is the country's largest offering in more than three years.
The shares hit a low of RM1.50 after the opening bell but rose to as high as RM1.80 in the first hour of trade, above the initial public offering (IPO) price of RM1.60 per share.
The company had raised RM1.5 billion (S$489.4 million) through the exercise, giving it a market value of RM10 billion. It is among the four major market listings in Malaysia so far this year.
Its IPO was oversubscribed by 3.91 times of the 941.49 million shares offered, with the institutional portion oversubscribed by 4.71 times.
Speaking at a virtual press briefing on Monday, its chief executive officer Adrian Ong said the company was on track to achieve the target of adding 307 new stores in the next two years.
"Our business is designed to grow, and it will grow for a number of reasons," he said, referring to the positive growth outlook for the home improvement sector.
Mr DIY joins a number of other Southeast Asian companies planning IPOs this year, including Philippines' fibre broadband provider Converge ICT Solutions Inc. The company's shares listed on Monday after a US$600-million IPO.
The IPO of Mr DIY had attracted more than a dozen cornerstone investors, including funds under BlackRock Inc, JPMorgan Asset Management and AIA Bhd.