Shares of Indonesian retailer PT Daya Intiguna Yasa Tbk (DIY), a unit of Malaysia’s MR.DIY, listed on the Indonesia Stock Exchange (IDX) on Thursday after raising 4.16 trillion rupiah ($254 million) in its IPO.
The shares opened at 1,550 rupiah apiece, down 6% from its IPO price of 1,650 rupiah a share. The share price declined to 1,240 rupiah apiece by 9.00 am local time before recovering to touch an intraday high of 1,900 rupiah. The scrip closed the day at 1,690 apiece, i.e. up 2% from the IPO price.
Liza Camelia Suryanata, Head of Research at NH Korindo Sekuritas, said the volatility in DIY’s shares reflects the broader weakness in the global markets following the US Federal Reserve’s stance that interest rates will be cut by only 50 basis points in 2025, lower than its previous projection of 75–100 basis points.
Domestically, weak consumer spending has raised concerns. This issue is worsened by the Indonesian government’s decision to raise value added tax (VAT) to 12%.
Despite the challenges, DIY is not a struggling company, according to Ezaridho Ibnutama, an analyst at NH Korindo Sekuritas. Ibnutama noted that DIY could emerge as a strong competitor to local home appliances company PT ACE Hardware Tbk, offering more affordable prices.
“In the face of weak purchasing power, consumers may cut back on non-essential spending. This makes DIY an interesting stock, as it can potentially attract Indonesia’s middle-class customers,” he told DealStreetAsia.
DIY had sold 2.52 billion shares, or 10% of its total equity, at 1,650 rupiah apiece to the public in November-end. This includes 9% from Azara Alpina, a Malaysian investment company; and 1% newly issued shares, priced between 1,650 and 1,870 rupiah apiece.
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 fall from 1.27% to 1.26%.
Noerhadi is the founder of Malaysian private equity firm Creador’s Indonesian operations and a commissioner of DIY. Creador fully exited 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.
Edwin Cheah, president director of DIY said the company will continue its expansion to new areas and aims to strengthen its position as a market leader in the home appliances industry.
Currently, DIY operates 13 subsidiaries. DIY currently has 824 stores across Indonesia, compared to 698 stores in 2023, with most of the stores located in Java and Sumatra 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.
