KUALA LUMPUR: MR.DIY Group (M) Sdn Bhd, Malaysia’s largest home improvement retailer, is planning to increase the number of local stores to a few hundred more in the near future, part of the company’s aggressive expansion strategy.
However, the company keeps mum on how it plans to fund the growth.
Managing director Adrian Ong said it planned to continue the growth pace after having already opened 100 stores annually in the past three years.
"We plan to open 100 stores every year. We feel that we should continue with this pace, at least for the foreseeable future," he told reporters at the launch of its 500th store here today.
He declined to answer any question pertaining to the firm’s initial public offering (IPO) or other fundraising plan.
MR.DIY, which opened its 500th and largest flagship concept store to date, was reportedly looking at Malaysia’s equity market for capital, in a deal that could turn it into one of the country’s biggest by market capitalisation.
A report revealed that MR.DIY was planning to launch an IPO either in Malaysia or Hong Kong in the fourth quarter of this year to support its domestic operation growth.
Via the listing, it aimed to raise RM1.5 billion and seek a market value of about RM10 billion.
The potential listing of MR.DIY by year end could mark the first return of mega IPO to Bursa Malaysia since Lotte Chemical Titan Holding Bhd’s and Eco World International Bhd’s first share-sales back in 2017.
However, with the local bourse stuttering, losing billions in market capitalisation and outflow of foreign funds, the likelihood of the IPO happening soon may be slim.
There were only two listings on Bursa’s Main Market last year, Mi Equipment Holdings Bhd and Techbond Group Bhd which raised a total RM231 million.
Based on Reuters data, despite having 22 listings in total across all three markets on the exchange last year compared with 13 listings in the preceding year, the funds raised were significantly lower than US$1.8 billion raised in 2017.
After opening its 500th store in 1 Utama Shopping Centre, Ong said MR.DIY plans to open 10 more next month, with one being in Hartamas Shopping Centre.
The store in 1 Utama offers customers a wide variety of products and premium shopping experience within a spacious 18,0005 sq ft site.
Ong said the milestone store was significant for MR.DIY’s growth as Malaysia’s leading home improvement brand.
MR.DIY is a home-grown enterprise with over 750 stores throughout Asia Pacific.
It has more than 8,000 employees serving more than 180 million customers yearly at all MR. DIY stores throughout the region.
Other than Malaysia, it has also expanded its operations to Thailand, Brunei, Indonesia, Philippines, and Singapore.