KUALA LUMPUR: Mr DIY Group is in talks with Aberdeen Standard Investments and BlackRock Inc to become cornerstone investors in its initial public offering, which could be Malaysia’s biggest in more than three years, said sources.
AIA Group Ltd is also in discussions to take a stake in the first-time share sale by Malaysia’s biggest home improvement retailer, according to the source who asked not to be named.
Mr DIY is planning to file an official prospectus as soon as next week and has set the initial public offering (IPO) price at RM1.60 each, the source said. The offering could raise about RM1.5 billion (US$362 million) based on the number of shares in its draft prospectus.
The source added that negotiations are ongoing where the investor line up could change.
Representatives for Aberdeen Standard, AIA Group, BlackRock and Mr DIY declined to comment.
The return of Mr DIY’s IPO comes after its sales surged to a record in May, June and July when the government partially lifted the movement control order restrictions to resuscitate the economy.
At RM1.5 billion, the group’s share sale would be the biggest IPO in Malaysia since Lotte Chemical Titan Holding Bhd raised US$849 million in 2017, data compiled by Bloomberg show.
The potential deal would give a boost to the nation’s equity capital market, which has only seen US$96.5 million worth of IPOs so far this year, putting it on track for the slowest year in more than a decade.
Mr DIY, backed by private equity firm Creador, opened its first store in Malaysia in 2005 and now operates more than 622 outlets across the country, according to its website. The company sells over 16,600 types of products in ten categories including furnishings, computer and mobile accessories, hardware and toys. Tesco plc and Aeon Co are among its business partners.