MR.DIY Debuts on Bursa Malaysia as 2020’s Largest IPO

SELANGOR, 26 OCTOBER 2020 – MR D.I.Y. Group (M) Berhad (“MR.DIY”), Malaysia’s largest home improvement retailer, made its debut on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) today. MR.DIY’s listing is the largest listing on the Malaysian exchange this year.

Malaysia’s largest IPO in 2020 with a market capitalisation of RM10.0 billion, the IPO exercise raised approximately RM1.5 billion from both institutional and retail investors.

In a shift from convention, the virtual listing ceremony was officiated not by senior management of the company, but by fourteen long-standing MR.DIY employees, representing more than 10,000 of MR.DIY’s employees nationwide. The employees were chosen from all levels of the organisation, selected to symbolise MR.DIY’s nationwide presence in all Malaysian states as well as the Federal Territories of Kuala Lumpur, Putrajaya & Labuan.

Speaking on behalf of the employees represented at the event, Division Manager Nabilah Abdul Ghani said, “This listing today is something I never dreamed I would see – the opportunity for long-standing staff to become shareholders in our company, and for everyone to celebrate its success.’

She also spoke about how the company having invested in growing talent like her. “It’s been a great journey. MR.DIY has supported, guided and invested in me. They saw my potential and taught me not just about the retail business, but how to manage operations, use data to support procurement, manage stores, and understand revenues. They also equipped me with leadership and management training. I’ve even had the chance to travel to Bangladesh, to meet and interview potential employees there. I was so very proud that day, to be representing a homegrown Malaysian company.” Nabilah joined MR.DIY as a promoter in 2012 while still an undergraduate, and then moved up the ranks. Today she manages 18 MR.DIY stores and 201 employees in Perak.

Commenting on the listing, MR.DIY Chief Executive Officer Adrian Ong said, “MR.DIY started with just one store and one brand in 2005. Along the way, we added MR.TOY and MR.DOLLAR to our portfolio. Today we have 3 brands with 674 stores across Malaysia and Brunei. We have taken our promise of “Always Low Prices” to every single state in this country. From Selangor to Sabah, we have become a familiar and trusted brand for everyday home improvement essentials.”

“The experiences of the past 15 years, and especially 2020, have given us the added conviction that our brand is not just one that Malaysians want in good times, but a reliable brand they can turn to in challenging times; a brand that allows them to stretch their ringgit further, without compromising quality. MR.DIY is a brand for all times, and for all seasons. And this listing -- the largest in Malaysia in 3 years -- is testament to the fact that our fellow Malaysians remain confident that there is growth, value, and positivity in our economic markets today.

He went on to say that the journey had not been without its challenges. “What it has taught us is that MR.DIY is resilient and responsive to the times. This year alone, we have opened 81 stores and grown our store network by 13.7%. Although brick & mortar stores remain our primary growth strategy, we have also grown our ecommerce business to offer an omnichannel shopping experience to our customers.”

“We have continued to invest in our people and have hired over 1,000 new employees during our recent nationwide recruitment campaign; one of the few Malaysian companies to buck the trend in both growth and employability.”

From 2017 till 2019, MR.DIY’s revenue and net profit recorded a hefty compound annual growth rate (“CAGR”) of 36.1% and 23.0% respectively. The global Covid-19 pandemic demonstrated the resilience and effectiveness of MR.DIY’s business model, making a V-shaped recovery in May and June 2020, with an aggregate revenue 11.9% higher as compared to the pre-Covid-19 period of January and February 2020.

Ong also touched on plans moving forward, detailing that the group planned to expand to an aggregate of 900 stores by the end of 2021, as well as expand its new retail formats -- MR.TOY and MR.DOLLAR -- which have been well-received by the market. “The company will also continue to offer attractive price-to-quality products, variety and convenience to our customers,” he added.

CIMB Investment Bank and Maybank Investment Bank were the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters of the listing exercise, with RHB Investment Bank as the joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter.

Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse (Singapore) Limited, JPMorgan Securities (Malaysia) Sdn Bhd and J.P. Morgan Securities plc were joint global coordinators and joint bookrunners; UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore branch were the joint bookrunners while AmInvestment Bank, Hong Leong Investment Bank and Kenanga Investment Bank were the joint underwriters for this listing exercise.

Jefferi M. Hashim, Chief Executive Officer of CIMB Investment Bank said, “MR.DIY’s business model, fundamentals and growth potential have garnered interest from retail and note-worthy institutional investors, thereby bringing its IPO to a successful close. Congratulations to MR.DIY on its listing, and we look forward to the Company’s next phase of growth.”

Fad'l Mohamed, Chief Executive Officer, Maybank Investment Bank said, "Our heartiest congratulations to MR D.I.Y. Group (M) Berhad on its successful listing on the Main Market of Bursa Malaysia. Maybank Investment Bank is honoured to have been involved in Malaysia’s biggest IPO of the year and we look forward to continue this journey with MR.DIY to bring 'Always Low Prices' to all.”

Robert Huray, CEO of RHB Investment Bank said, “I would like to congratulate the Board of Directors, Senior Management and employees of MR.DIY for the Company’s landmark debut on the Main Market of Bursa Malaysia. This is indeed a momentous occasion and marks a key milestone in the growth and expansion of MR.DIY. We are truly honoured to have been given the opportunity to work with such a dedicated team on the IPO, which sets the stage for even greater growth for the company moving forward. We wish MR.DIY every success as a newly listed entity and look forward to a continued partnership in accelerating its brand as one of Malaysia’s leading home improvement specialist.”