Mr DIY

Mr DIY

Postby winston » Thu Sep 24, 2020 9:11 pm

not vested

Main Market-bound Mr DIY to issue 941.49 million IPO shares

by Lam Jian Wyn

KUALA LUMPUR (Sept 24): Mr DIY Group (M) Bhd, which plans to list on the Main Market of Bursa Malaysia, will issue 941.49 million new and existing ordinary shares as part of its initial public offering (IPO), it said in a statement today.

The retailer will be offering 470.75 million IPO shares to bumiputera investors approved by the Ministry of International Trade and Industry, and 309.21 million existing ordinary shares to Malaysian institutional and selected investors, foreign institutional and selected investors outside the US, and qualified institutional buyers in the US.

Meanwhile, its retail offering comprises 36 million new ordinary shares to directors and employees of the company as well as eligible individuals who have “contributed to Mr DIY’s success”, and 125.53 million new ordinary shares to the public.

Sources have told The Edge that the listing could take place as soon as in the fourth quarter of this year, thanks to its V-shaped recovery from the pandemic-induced Movement Control Order (MCO) that had hit retailers.

According to Bloomberg, the IPO aims to raise about US$500 million (RM2.1 billion). It was postponed twice — late last year and in the first half of this year, due to the MCO.

According to Mr DIY, it operates 640 stores across Malaysia and four stores in Brunei under the Mr DIY brand as at Sept 6. It also operates the Mr Toy chain of stores offering affordable toys and products for children and babies, and Mr Dollar, which sells F&B and household goods at either RM2 or RM5.

The group has signed an underwriting agreement with CIMB Investment Bank, Maybank Investment Bank, RHB Investment Bank, AmInvestment Bank, Hong Leong Investment Bank and Kenanga Investment Bank.

CIMB IB, Maybank IB and RHB IB are the joint managing underwriters and joint underwriters while AmInvestment, Hong Leong IB and Kenanga IB are the joint underwriters for this IPO exercise.

CIMB IB and Maybank IB are also the joint principal advisers, joint global coordinators and joint bookrunners, while RHB IB is also the joint global coordinator and joint bookrunner.

Meanwhile, Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse (Singapore) Ltd, J.P. Morgan Securities plc and JPMorgan Securities (Malaysia) Sdn Bhd are the joint global coordinators and joint bookrunners, and UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are the joint bookrunners.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ipo-shares
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Re: Mr DIY

Postby winston » Fri Oct 16, 2020 2:17 pm

Mr DIY deemed more valuable than Malaysia's postal service provider, airport operator

by Arjuna Chandran Shankar

For Main-Market bound Mr DIY Group (M) Bhd, its market capitalisation of RM10 billion upon listing, based on its initial public offering (IPO) price of RM1.60 sen per share, will make it more valuable than the country’s airport operator and national postal service provider.

IPO Price RM1.60.

Inter-Pacific Research placed a fair value of RM1.85 on Mr DIY, based on a target price-to-earnings ratio (PER) of 27.5 times to its forecast earnings per share of 6.7 sen for the calendar year 2021 (CY21).

TA Securities Research meanwhile, placed a fair value of RM1.73 on Mr DIY, based on CY21 EPS of 6.9%, and a PER of 25 times.

“Considering the negative impact from the MCO (Movement Control Order) and the temporary closure of selected stores during March to May 2020, we forecast FY20 earnings to fall 18.0% to RM260.4 million, before jumping 66.5% and 22.2% in FY21 and FY22 to RM433.5 million and RM529.6 million respectively.

The acceleration in FY21 and FY22 is supported by new store expansion,” Lye wrote in a note on Monday.

It plans to have 900 stores across Malaysia and Brunei by end-2021, from the 674 it currently operates. It is set to debut on Oct 26.


Source: The Edge

https://www.theedgemarkets.com/node/536645
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Re: Mr DIY

Postby winston » Sun Oct 18, 2020 9:44 pm

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Thinking of investing in Mr DIY? Read this first

KUALA LUMPUR (Oct 18): The initial public offering (IPO) of home improvement retailer Mr DIY has understandably generated some excitement in the domestic market.

After all, it will be the largest IPO in three years, seeking to raise RM1.5 billion. The listed company will have a market capitalisation of RM10 billion at the offer price of RM1.60.

At this price, its shares are valued at 31.5 times trailing earnings. This is a rich price-to-earnings valuation by almost all yardsticks — sold on the premise of its considerable growth potential.

The company is looking to expand its footprint in Malaysia by opening more new stores. How realistic are these expectations, though?

In a span of six short years, the number of stores has grown from 100 to 674 currently, equivalent to a compound annual growth rate of 37.4%. The company intends to add 226 outlets, or 33.5% growth, to hit a total store count of 900 by end-2021.

Asia Analytica thinks this pace of growth may not be sustainable. Why?

In its report ‘Mr Don’t Invest Yet’ published in the The Edge Malaysia weekly’s Oct 19 issue, the research firm highlights how Mr DIY is operating the largest chain of home improvement stores in the region — despite Malaysia’s significantly more modest population size.

In fact, Malaysia’s number of home improvement stores per million population is well ahead of Indonesia and Singapore, and on par with some of the developed economies like the UK (see chart).

Asia Analytica also highlights its declining same-store sales growth and inventory turnover, which underscores why it believes Mr DIY’s growth prospects are limited.

The research firm is also troubled by the sharp rise in its borrowings — as well as the reason behind the increased borrowings.

Source: The Edge

https://www.theedgemarkets.com/article/ ... read-first
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