Mr. DIY Indonesia submits IPO application

The Indonesian unit of Malaysian home improvement retail group Mr. DIY aims to raise 4.71 trillion Indonesian rupiah (EUR 281,741 mio) from listing 10 per cent of the company on the Indonesian bourse. The company will use 60 per cent of the proceeds from the initial public offering, slated for 19 December, for debt repayment, while 30 per cent will be used for expansion. The remaining 10 per cent will be used as working capital.

Angus Mackintosh, CrossAsean Research analyst, noted that the shares sale is mostly coming from existing shareholders, indicating that not much new money will be coming in. He also said that the listing, similar to the one that the group did in Malaysia and the upcoming one in Thailand, is mainly to allow investors to exit the company.