Creador-backed Malaysian Retailer Mr DIY Revives $500m IPO Plan

Dealmakers are looking for signals from investors of enthusiasm for Malaysian new share sales as Mr DIY Group revives its $500 million initial public offering, which would be the country’s biggest in four years.

The home improvement retailer aims to restart gauging investors’ interest for the IPO next month after postponing the share sale in March when the Covid-19 pandemic worsened, according to people familiar with the matter. The offering could begin as early as October, said the people, who asked not to be identified as the information is private.

At $500 million, Mr DIY’s share sale would be the biggest IPO in Malaysia since Lotte Chemical Titan Holding Bhd. raked in $849 million in 2017, according to data compiled by Bloomberg. The potential deal would give a boost to the nation’s equity capital market, which has only seen $70.7 million worth of IPOs so far this year, the slowest in more than a decade.

A successful debut of Mr DIY would also bolster the confidence of bankers and executives who are hoping recent enthusiasm for Malaysian companies is not limited to glove makers, whose pandemic-driven share surge has helped the FTSE Bursa Malaysia KLCI Index rebound nearly 30% from its March low.

Glovemaker Harps Holdings Sdn. is weighing an IPO in Kuala Lumpur to raise about $500 million as soon as next year, Bloomberg News reported last week. Credit reporting agency CTOS Holdings Sdn. and The Holstein Milk Co. are also considering first-time share sales in 2021.

The return of Mr DIY’s IPO comes as its sales surged to a record in May and June, after the government partially lifted coronavirus-driven restrictions in order to resuscitate the economy, the people said.

Mr DIY, backed by private equity firm Creador, opened its first store in Malaysia in 2005 and now operates more than 622 outlets across the country, according to its website. The company sells over 14,000 types of products in ten categories including furniture, computer accessories, hardware and toys. It counts Tesco Plc and Aeon Co. among its business partners.

Deliberations on the IPO plan are still ongoing and there is no certainty the company will proceed, said the people. Representatives for Creador and Mr DIY declined to comment.

Bloomberg