Top Malaysia Home Improvement Chain Explores $500 Million IPO

(Bloomberg) -- Mr. D.I.Y., Malaysia’s biggest home improvement retailer, is exploring an initial public offering that could raise about $500 million, people with knowledge of the matter said.

The company has been interviewing potential underwriters as it considers a listing in Kuala Lumpur, according to the people. Mr. D.I.Y. is targeting a market value of about 10 billion ringgit ($2.4 billion), the people said, asking not to be identified because the information is private.

Mr. D.I.Y., which is backed by private equity firm Creador, could list as soon as the end of the year, the people said. It is considering including only its domestic operations in the listed vehicle, one of the people said.

Creador Chief Executive Officer Brahmal Vasudevan said by phone that Mr. D.I.Y. is exploring an IPO and expects to make a decision in the next month. Officials at Mr. D.I.Y. didn’t immediately respond to an email and phone calls seeking comment.

Mr. D.I.Y. joins other private equity-backed firms in seeking to sell shares in Malaysia. KFC restaurant operator QSR Brands (M) Holdings Sdn., which is backed by CVC Capital Partners, and Leong Hup International Bhd., a poultry producer part-owned by Affinity Equity Partners, have also been preparing to list in the domestic market.

Fundraising from first-time share sales in Malaysia fell about 90 percent last year to $180 million, the lowest annual tally in at least a decade, data compiled by Bloomberg show. Deliberations about a listing of Mr. D.I.Y. are at an early stage, and details of the offering could change, the people said.

Mr. D.I.Y. has over 500 outlets throughout Malaysia, one of the people said. It has more than 4,000 employees and serves over 78 million customer annually at its stores in the the Southeast Asian nation, according to its website. The company has also expanded its operations to Thailand, Brunei and Indonesia.

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