Jakarta, November 25, 2024 — PT. Daya Intiguna Yasa, Tbk. or better known by the brand MR.DIY, the largest household goods retailer in Indonesia, today announced plans to hold an Initial Public Offering (IPO) as a strategic step to accelerate expansion and strengthen its position as a leader in the non-grocery-based retail industry.
This step is an important milestone in MR.DIY's journey since entering the Indonesian market in 2017. "We have a vision to continue to expand our reach in order to serve more customers throughout Indonesia, presenting quality products with the best value that are affordable for all groups," said Edwin Cheah, President Director of PT. Daya Intiguna Yasa Tbk., Jakarta, Monday, November 25, 2024.
MR.DIY plans to release shares to the public through an IPO of 2,519,039,400 shares or equivalent to 10% of the issued and paid-up capital after the IPO. The shares will be offered at a price range of IDR 1,650 to IDR 1,870 per share.
The initial offering or bookbuilding will start on Monday, November 25 to Tuesday, December 3, 2024. The plan is, MR.DIY will be listed on the Indonesia Stock Exchange (IDX) on Thursday, December 19, 2024 with the stock code MDIY.
MR.DIY appointed PT. CIMB Niaga Sekuritas and PT. Mandiri Sekuritas as underwriters for the issuance of securities.
Through this IPO, MR.DIY has the potential to raise funds of up to IDR 4.71 trillion. This amount consists of IDR 471.06 billion from the offering of new shares, and IDR 4.24 trillion from the offering of shares by Selling Shareholders.
The company will allocate the funds obtained from the IPO for several purposes. Around 60% will be used for debt principal payments, 30% will be allocated for the cost of opening new stores in the Jabodetabek, Java, Sumatra, Sulawesi, Kalimantan, Nusa Tenggara, Papua, and Maluku Islands areas. While the remaining 10% will be used as operational working capital. With more than 800 stores spread throughout Indonesia, MR.DIY has become the main destination for household needs in various regions evenly. This rapid growth not only reflects the strength of the company's business model, but also the success of its aggressive expansion strategy.
Edwin explained, "In the first five years (2017-2022), we managed to open 400 stores. However, in the last two years alone (2022-2024), we have added around 400 more stores. This proves our ability to continue to accelerate growth and reach more customers in various regions."
The company's revenue in the period 2021 to 2023 experienced growth with a CAGR of 109%, increasing from IDR894 billion to IDR3.9 trillion. In addition, net profit showed a significant change, from a loss of IDR80 billion in 2021 to a profit of IDR353 billion in 2023.
The increase in operational effectiveness and expansion strategies implemented by the company resulted in healthy cash flow, increasing to IDR291 billion at the end of 2023, compared to IDR132 billion in 2022.
For additional information, as of June 30, 2024, the Company had posted revenue of IDR3.2 trillion and net profit of IDR534 billion, with a strong cash flow position of IDR361 billion.
Based on Frost & Sullivan data, the non-grocery retail segment in Indonesia has a Total Addressable Market (TAM) of USD18.4 billion, with the household equipment segment contributing USD1.4 billion.
"The non-grocery retail segment is expected to grow at a CAGR of 8% in the 2023-2028 period, driven by Indonesia's positive economic growth, large and increasing population, rapid urbanization, and increasing income levels. We are in a strong position to capitalize on this momentum," said Edwin.
With a market penetration rate of 1.9% in 2023, MR.DIY sees a great opportunity to continue expanding its market share in the non-grocery retail segment.
"This IPO is not only about business growth, but also about creating a positive impact on the Indonesian people. With this step, we are optimistic that MR.DIY will continue to be a reliable partner for customers, society, and shareholders," concluded Edwin.
