Mr DIY delays IPO
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Malaysian home improvement brand Mr DIY may postpone its planned IPO following the effect of political uncertainty on the domestic market.
Malaysia’s equities market suffered heavily from the impact of Malaysian president Mahathir Mohamad’s unexpected resignation, as well as the continuing impact of the coronavirus outbreak. The Malaysian stock market’s 12-year bull run came to an end just last week as the media spread the news about the outgoing president. A global rout of stock prices relating to the coronavirus crisis has not helped the local situation either.
Mr DIY is expected to make a decision regarding the IPO this week. The IPO was originally targeted for the end of this month with a view to raising capital of around US$5 million, and may still go ahead if market conditions show any sign of improvement.
Mr DIY operates close to 600 outlets in the country.
Questions & Answers
Q.What factors are causing Mr DIY to delay its planned IPO?
What factors are causing Mr DIY to delay its planned IPO?
The delay is primarily due to political uncertainty in the domestic market, stemming from President Mahathir Mohamad’s resignation. This, combined with the ongoing coronavirus outbreak, has heavily impacted Malaysia's equities market.
Q.When was the Mr DIY IPO originally planned to take place?
When was the Mr DIY IPO originally planned to take place?
The IPO was originally targeted for the end of this month. Mr DIY is expected to make a final decision regarding the postponement later this week.
Q.What is the primary reason for Mr DIY’s IPO, and how much capital did it aim to raise?
What is the primary reason for Mr DIY’s IPO, and how much capital did it aim to raise?
Mr DIY intended to use the IPO to raise capital for the company. The original target for this capital raise was approximately US$5 million.
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