MR. D.I.Y. sets IPO offer price
MR. D.I.Y. Holding (Thailand) Plc (MRDIYT) is poised for listing on the Stock Exchange of Thailand (SET) after Atlas Energy Plc listed earlier this month, hinting at a fresh wave of initial public offerings (IPOs).
MRDIYT, one of Thailand’s leading home improvement and lifestyle retailers, set an offering price range of 8.30-8.60 baht a share.
The subscription period for retail investors and related persons is Oct 20-22, while local and foreign institutional investors may subscribe between Oct 27-29. The company expects to make its trading debut on the SET in early November.
Bualuang Securities (BLS) and CIMB Thai Bank Plc are financial advisors for this offering, with BLS and CGS International Securities (Thailand) acting as joint lead underwriters.
The IPO comprises up to 655 million shares, representing 10.89% of MRDIYT’s total paid-up capital after the offering. Of these, 420 million shares are newly issued by the company, while 235 million shares are offered by existing shareholder MDIH (Singapore) Pte Ltd.
The final offering price will be determined through a book-building process among institutional investors to assess demand within the price range.
MRDIYT expects to raise 3.3-3.4 billion baht from the IPO, with proceeds allocated for business expansion, debt repayment and working capital.
Founded in 2016, MRDIYT operates as a holding company and has grown rapidly to become a nationwide retail leader with more than 1,000 stores.
The company offers more than 16,000 items across six categories: hardware; household and furnishings; electrical; stationery and sports; toys; and others.
The MRDIYT IPO follows the successful share offering of Atlas Energy earlier this month, raising 1.26 billion baht from its IPO of 418.12 million shares priced at 3 baht each.
Atlas operates in liquefied petroleum gas (LPG) and high-margin media sectors, leveraging synergies under the PTG Energy umbrella and utilising its Max Card membership base of more than 20 million users to expand its market footprint.
According to Amorn Piriyapatsom, executive vice-president at Sage Capital Ltd, the financial advisor to Atlas, proceeds from the IPO will support expansion of the company’s LPG operations, including household cooking gas, gas refilling plants, cylinder production, new LPG stations, and the PT Auto Transform Project, which promotes the adoption of LPG-fuelled vehicles and expansion into industrial and commercial segments.
Suwatchai Pithakwongsaporn, managing director of Atlas, said the SET listing marked a milestone in the company’s growth journey, reinforcing its vision of becoming a leading innovator in energy products and household services.
According to an industry source who requested anonymity, with the two October listings investor sentiment in Thailand’s equity market remains upbeat, underscoring the positive outlook for new listings in the final quarter.
Arnupharp Kongmalai, vice-president of marketing at MRDIYT, said the Thai retail industry faces volatility from both internal and external factors. Rising tensions between Thailand and Cambodia have also affected retail sentiment.
In this environment, some higher-income consumers are trading down for purchases, presenting an opportunity for a firm that targets the mass market and position its products as value-for-money options, he said.
In Malaysia MR. D.I.Y. serves roughly 25,000 people per store and continues to expand, whereas in Thailand each store serves around 75,000 people, making the company bullish about its growth here, said Mr Arnupharp.
Regarding the government’s “Khon La Khrueng Plus” co-payment scheme, he said the company is not participating and it will launch its own marketing campaign during that period.
Source – Bangkok News
