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Mr DIY Indonesian Business Plans IPO to Raise Up to $297 Million

City skyline around Sudirman area in Jakarta, Indonesia, on Thursday, Feb. 15, 2024. Indonesian stocks jumped in early trading as traders bet on policy continuity after Defense Minister Prabowo Subianto declared victory in Wednesdays presidential vote. Photographer: Muhammad Fadli/Bloomberg (Muhammad Fadli/Bloomberg)

(Bloomberg) -- The Indonesian sister company of Mr DIY Group (M) Bhd. will list shares in Jakarta through an initial public offering that seeks to raise as much as 4.7 trillion rupiah ($297 million), in what would be the nation’s biggest listing in more than a year. 

PT Daya Intiguna Yasa, the Indonesian affiliate of the Malaysian home-improvement retailer, plans to offer as many as 2.5 billion shares in the IPO, including 2.3 billion shares currently held by shareholder Azara Alpina Sdn Bhd, according to Mr DIY’s listing document on Monday. The company is marketing the shares at 1,650 rupiah to 1,870 rupiah apiece. 

It will take investor orders from Monday until Dec. 3 and expects to list the shares on Dec. 19. Bloomberg News in September reported the company was considering listing its shares as early as this year in a deal that could raise as much as $300 million. 

The equity raising would boost initial offerings in Indonesia that has garnered just $371.5 million so far this year, far below the $3.6 billion raised in all of 2023, according to data compiled by Bloomberg. Mr DIY’s Jakarta IPO would also be the biggest in the nation since gold miner PT Amman Mineral Internasional’s listing in July 2023. 

Mr DIY’s Indonesia business, which operates more than 800 stores in the country, posted a profit of 534.7 billion rupiah for the first half of the year. It plans to use about 60% of proceeds to pay debt and the rest to open new stores and fund working capital. 

Mr DIY Group’s IPO raised about $363 million in Malaysia in 2020. Its Thailand sister company also plans to list in Bangkok. PT CIMB Niaga Sekuritas and PT Mandiri Sekuritas are arranging the Jakarta IPO.

©2024 Bloomberg L.P.