Malaysia’s largest home-improvement retailer seeks $361m in IPO

KUALA LUMPUR — Home-improvement store operator Mr DIY Group of Malaysia opened its initial public offering for bids, aiming to raise 1.5 billion ringgit ($360.6 million) in what would be the country’s largest stock market listing since 2017.

The company on Tuesday unveiled its prospectus, an important step to listing on the main board of Kuala Lumpur’s stock exchange, known as Bursa Malaysia. Mr DIY’s first two attempts at listing — late last year and the first half of 2020 — were shelved amid the coronavirus pandemic.

The offering would give the company a market capitalization of 10 billion ringgit post-IPO, CEO Adrian Ong said at an online news conference after the prospectus was released.

Mr DIY is targeting a retail price of 1.60 ringgit a share, with the institutional offering consisting of 779.95 million shares and 161.53 million shares allocated for the retail offering.

“We today have a 29% market share of the overall home-improvement retail market in Malaysia,” he said, adding that the company has been growing faster than the country’s annual industry average of 10.2%.

“About 300 million ringgit [of the IPO’s proceeds] would be mainly used to repay existing debts,” Ong added.

The offering would be the largest in Malaysia since chemicals producer Lotte Chemical Titan raised about 3.77 billion ringgit in July 2017.

Since Mr DIY opened its first location in 2005, the company has fast grown into Malaysia’s largest home-improvement retailer, with 674 stores across the country and four stores in Brunei. In addition to the Mr DIY core brand, the company also operates two other store chains: Mr Toy, which sells affordable toys, and Mr Dollar, which offers a fixed-price point model.

“We are adding stores at a very fast pace, which suggests that we have confidence in the business,” Ong said. The company has set a two-year target, which began in January this year, to open 307 new stores.

Each of the Mr DIY stores can cost between 1 million ringgit and 1.6 million ringgit. The company so far has no ambitions to venture outside of its existing markets, he said.

Ong said that the pandemic affected the company financially because of the “movement control order” imposed in Malaysia, where most of Mr DIY stores had been closed earlier this year for at least a month. However, that has been compensated with a spike in sales since restrictions were lifted in May.

The Malaysian government imposed a nationwide lockdown for two months beginning in mid-March, forcing nonessential businesses to close in order to limit activity.

“We recorded a revenue of 416 million ringgit for the first two months of the year” before the lockdown, he said. “In contrast, we registered sales of 466 million ringgit in May and June, combined.”

Cornerstone investors for Mr DIY include Fidelity International, BlackRock and AIA.

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ByteDance floats US IPO for TikTok in effort to win White House approval

TikTok


  • One avenue ByteDance is exploring to satisfy President Trump’s concerns about TikTok is a US IPO, CNBC’s David Faber reported on Thursday, citing sources.
  • ByteDance spinning off TikTok with a US listing could satisfy President Trump’s objection of the Beijing-based tech company retaining a majority stake in TikTok.
  • Walmart and Oracle would likely own minority stakes in a spunoff TikTok, according to Faber.
  • Visit the Business Insider homepage for more stories.

ByteDance is exploring plans to spinoff its global TikTok operations in the form of an IPO on a US stock exchange, CNBC’s David Faber reported on Thursday.

The move could satisfy President Trump’s ownership concerns regarding ByteDance and TikTok. Trump said on Wednesday that he doesn’t like the idea of Beijing-based ByteDance retaining a majority stake in TikTok. 

Oracle would own a minority stake in TikTok of less than 20%, while Walmart is also expected to take a stake in the popular social media company, according to Faber. The potential size of Walmart’s stake is still unknown.

There would likely be a new US board of directors for TikTok’s American operations, with Walmart CEO Doug McMillion expected to have a seat on the board, CNBC reported.

Read more: Jefferies handpicks the 17 best stocks spanning multiple sectors to buy now – and details why each company’s future looks ‘particularly attractive,’ even in a downturn

A potential TikTok IPO would likely mark the largest technology IPO in recent years, with the company being most recently valued at an estimated $50 billion in private funding rounds, according to Reuters.

In recent days, Trump has been meeting with cabinet members and advisers like Secretary of Treasury Steve Mnuchin and Jared Kushner on whether or not to approve a proposed TikTok deal with Oracle, according to CNBC.

Friday’s announcement that the Trump administration would block app downloads of TikTok and WeChat starting this Sunday suggest approval of a TikTok deal with Oracle is still up in the air. 

Read more: A Wall Street firm shares its 5 best ideas for investors who need alternatives to expensive tech stocks – including trades poised to turnaround after getting pummeled by the pandemic

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