MR D.I.Y. Group (M) Bhd, the country’s largest IPO this year, made its debut on the Main Market of Bursa Malaysia at RM1.60 this morning.
The share of the home improvement retailer was trading at RM1.61. There were 49.78 million shares done at prices ranging from RM1.50 to RM1.62. As at 12.01pm, Mr D.I.Y advanced 12 sen to RM1.72, with 24.80 million shares traded.
The FBM KLCI was up 2.38 points or 0.16% to 1,497.02. Turnover was 381.90 million shares valued at RM222.28mil. There were 301 gainers, 105 losers and 283 counters unchanged.
MR D.I.Y. raised RM1.5bil from the market. Its IPO comprised up to 941.49 million shares – an offer for sale of up to 753.09 million existing shares and a public issue of 188.40 million new shares.
The RM1.5bil IPO was oversubscribed by retail investors as well as Malaysian and foreign institutional funds by 3.91 times.
Mr D.I.Y is allocating a capital of RM438 million for its business expansion
Chief executive officer Adrian Ong said the home improvement retailer is allocating a capital expenditure of RM438 million for its business expansion over the next two years. The company plans to increase the number of its retail stores under the brand Mr D.I.Y, Mr Toy and Mr Dollar to 900 outlets nationwide by Dec 2021. Currently, Mr D.I.Y has 670 stores across Malaysia and four in Brunei.
“Our focus is to continue opening more stores in our markets in Malaysia and Brunei. Our home improvement stores under the Mr D.I.Y brand will continue to be the main focus for growth, followed by Mr Dollar and Mr Toy.
“We will finance (the expansion) using the strong cash generative capability of our business, which does not only fund our growth but also provide sufficient cashflow for us to pay dividends to our shareholders,” said Ong.
They will continue to invest and grow the e-commerce segment
This year alone, Mr D.I.Y. have opened 81 stores and grown its store network by 13.7%. Although brick and mortar stores remain their primary growth strategy, they have also grown the e-commerce business to offer an omnichannel shopping experience to the customers.
The group will continue to invest in strengthening its business and plans to grow its e-commerce segment which saw a 500% rise in revenue in the first half of this year.
“Under the Mr D.I.Y brand, we invested with a target of payback in two years and that is a very good payback. That is the benchmark which we had set for our businesses, but it is too early to set the payback period for our new businesses,” he added.