PT Daya Intiguna Yasa (DIY) Tbk, a subsidiary of the Malaysian home improvement company MR DIY, is planning to raise 4.7 trillion rupiah ($296.45 million) through an initial public offering (IPO), according to its prospectus filed with IDX on Monday.
The announcement follows a Bloomberg report in September which said that the Indonesian unit was looking at a $300-million IPO this year or early 2025.
According to the company’s prospectus, DIY intends to offer 10% of its shares to the public. This offering includes 9% of shares from Azara Alpina, a Malaysian investment company; and 1% in newly issued shares, priced between 1,650 and 1,870 rupiah per share.
Following the IPO, Azara Alpina’s stake in DIY will decrease from 95.67% to 85.71%. Meanwhile, Darwin Cyril Noerhadi’s stake will decline slightly from 2.3% to 2.28%, and Agave Salmiana, a Malaysian consultancy and management services firm, will see its stake reduced from 1.27% to 1.26%.
Noerhadi is the founder of Creador’s Indonesian operations and a commissioner of DIY. Creador fully exited from MR DIY last year.
The company plans to allocate 60% of the IPO proceeds to repay its debt to Bank CIMB Niaga. Meanwhile, 30% will be used by its subsidiaries to expand their store network in the Jabodetabek area, as well as in Java, Sumatra, Sulawesi, Kalimantan, Nusantara, Papua, and Maluku from 2025 to 2026. The remaining funds will be allocated to its subsidiary, PT Duta Sentosa Yasa (DSY), for working capital.
The book-building process will be open from Nov 25, 2024, until Dec 3, 2024. Meanwhile, the public offering is scheduled from Dec 13-17, 2024, and the shares will be listed on Dec 19, 2024.
Currently, DIY operates 13 subsidiaries across major and retail trading sectors. DIY currently has 824 stores across Indonesia, compared to 698 stores in 2023, with most of the stores located in Java and Sumatera Island. The company said that only three stores were closed this year and two last year.
The company reported a net profit of 534.21 billion rupiah in the first half of 2024, a significant increase from 151.18 billion rupiah during the same period last year. Its revenue nearly doubled to 3.2 trillion rupiah in 2024, compared to 1.66 trillion rupiah in the same period last year.
Besides DIY, Indonesian energy firm Adaro Andalan also plans to go public in IDX this year. These will be the two biggest IPOs in Indonesia this year.
Indonesia Stock Exchange (IDX) President Director Iman Rachman had told the media that there will be three major IPOs before the end of this year. With DIY and Adaro Andalan’s IPO, one more big IPO remaisn in the pipeline.
IDX reported that 36 companies had been listed on the exchange as of November 8, 2024, with a total fundraising of 5.42 trillion rupiah. There are 29 companies in the IDX IPO pipeline, set to list either this year or next, 17 of which have assets over 250 billion rupiah.
