Jakarta. Malaysian home improvement retailer MR DIY aims to deepen its presence in the Indonesian market through its local subsidiary, Daya Intiguna Yasa. The company has announced plans to launch an initial public offering (IPO) on the Indonesia Stock Exchange (IDX).

The company intends to offer 2.52 billion shares, representing 10 percent of its enlarged capital, at a price range of Rp 1,650 to Rp 1,870 per share. The offering could raise up to Rp 4.71 trillion ($300 million), comprising proceeds from new share sales and divestments by existing shareholders.

Bookbuilding began on Nov. 25 and will continue through Dec. 3, with the shares scheduled to debut on the IDX under the ticker "MDIY" on Dec. 19. CIMB Niaga Sekuritas and Mandiri Sekuritas are serving as joint lead underwriters.

Sixty percent of the proceeds will be used to repay outstanding debt, 30 percent will fund new store openings across key regions—including Greater Jakarta, Java, Sumatra, Sulawesi, Kalimantan, Nusa Tenggara, Papua, and the Maluku Islands—and the remaining 10 percent will be allocated for working capital.

“We aim to expand our reach and serve more customers across Indonesia by offering high-quality, affordable products,” said Edwin Cheah, President Director of MDIY, in a statement on Monday.

Since entering the Indonesian market in 2017, MR DIY has rapidly grown, opening more than 800 stores nationwide. The company doubled its store count over the past two years alone, underscoring its aggressive expansion strategy.

From 2021 to 2023, MR DIY recorded a compound annual growth rate (CAGR) of 109 percent in revenue, rising from Rp 894 billion to Rp 3.9 trillion. During the same period, the company turned profitable, reporting a net income of Rp 353 billion in 2023, compared to a loss of Rp 80 billion in 2021. Operating cash flow more than doubled to Rp 291 billion in 2023, reflecting improved efficiency.

As of June 30, 2024, MDIY reported revenue of Rp 3.2 trillion, net income of Rp 534 billion, and cash reserves of Rp 361 billion.

Indonesia’s non-grocery retail sector, valued at $18.4 billion, is projected to grow at a CAGR of 8 percent from 2023 to 2028, according to Frost & Sullivan. The home improvement segment alone contributes $1.4 billion. With a current market share of 1.9 percent, MR DIY sees significant potential for expansion.

“With a large and growing population, rapid urbanization, and rising incomes, Indonesia offers substantial opportunities for retail growth,” Edwin said.