Malaysia’s Mr DIY seeks to raise US$360 million
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Malaysian home improvement retailer MR DIY Group opened the books for its 1.5 billion ringgit ($361.71 million) initial public offering (IPO) on Tuesday, the country’s largest listing in three years.
The company fixed the offer price at 1.60 ringgit per share, giving it an estimated market capitalization of 10 billion ringgit. The bookbuild period will last seven working days, before pricing on Oct. 14 and listing on Oct. 26.
MR DIY joins a number of other Southeast Asian companies planning IPOs this year, including Thailand’s Siam Cement Group Packaging and Philippines’ Converge ICT Solutions Inc, a trend that signals an uptick in fundraising activity in underperforming markets.
The MR DIY listing is on track to be the largest in Malaysia since Lotte Chemical Titan raised 3.77 billion ringgit in July 2017.
Offering up to 941.5 million shares, representing around 15% of its enlarged issued share capital, MR DIY said it planned to use the IPO proceeds primarily to repay bank borrowings.
Questions & Answers
Q.How much capital is MR DIY hoping to raise from its IPO?
How much capital is MR DIY hoping to raise from its IPO?
MR DIY aims to raise 1.5 billion ringgit from its initial public offering. This amount is equivalent to approximately $361.71 million at the current exchange rate mentioned in the article.
Q.What is the primary purpose for MR DIY raising funds through this IPO?
What is the primary purpose for MR DIY raising funds through this IPO?
The company has stated that it plans to use the proceeds from the initial public offering primarily to repay its existing bank borrowings. This financial move aims to strengthen its balance sheet.
Q.When is MR DIY expected to be listed on the stock exchange?
When is MR DIY expected to be listed on the stock exchange?
MR DIY's shares are scheduled to be listed on the stock exchange on October 26. The offer price for the IPO will be finalised on October 14, following a seven-working-day bookbuild period.
Q.What is the estimated market value of MR DIY based on its offer price?
What is the estimated market value of MR DIY based on its offer price?
Based on the fixed offer price of 1.60 ringgit per share, MR DIY is estimated to have a market capitalisation of 10 billion ringgit. This valuation reflects its size upon listing.
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