Mr DIY Group -- founded by Malaysian billionaire brothers Tan Yu Yeh and Yu Wei -- is raising as much as 4.7 trillion rupiah ($297 million) from the listing of its Indonesian unit, Daya Intiguna Yasa, in what could be the country's biggest IPO this year.
Daya Intiguna will offer 2.5 billion shares, or about 10% of the company, at between 1,650 rupiah to 1,870 rupiah per share, according to the IPO prospectus released on Monday. The maiden share sale will be the largest IPO in Jakarta since Amman Minerals Internasional -- which is backed by billionaires Anthoni Salim and Agus Projosasmito -- raised $710 million from its listing in July 2023.
The Jakarta IPO of Daya Intiguna comprises the sale of 252 million new shares, while the rest will be sold by controlling shareholder, Azara Alpina, whose stake in Daya Intiguna will be diluted to about 85.7% from 95.7 after the IPO.
The IPO book-building process will start today until December 3, while trading of Daya Intiguna on the Indonesian bourse will begin December 19.
The company will use 60% of the proceeds from the IPO for debt repayment, while 30% will be used to expand the company's presence across Indonesia, and the rest will be used for working capital.
Daya Intiguna operates more than 800 stores nationwide, making it the largest home improvements retail chain in Indonesia, according to Frost & Sullivan. The company's net profit more than tripled to 534.7 billion rupiah in the first six months of 2024.
The Tan brothers and their family have a combined net worth of $1.7 billion, ranking them No. 11 in the Forbes Asia list of Malaysia's 50 Richest that was published in April. They founded Mr. D.I.Y. Group, a home improvement retail chain, in 2005. The company, which was listed on the Malaysian stock exchange in October 2020, operates more than 2,000 stores across Asia.