MR. DIY Ready For IPO, Target Funds Of Up To IDR 4.7 Trillion

Photo: Special

JAKARTA - PT Daya Intiguna Yasa, Tbk. or better known as the MR. DIY brand, a household appliance retailer, today announced plans to hold an Initial Public Offering (IPO) as a strategic step to accelerate expansion and strengthen the position of 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 so that we can serve more customers throughout Indonesia, presenting quality products with the best affordable value for all groups," said President Director of PT Daya Intiguna Yasa Tbk, Edwin Cheah, in Jakarta, Monday, November 25.

MR. DIY plans to release shares to the public through an IPO of 2,519,039,400 shares or the equivalent of 10% of the issued and paid-up capital after the IPO. Shares will be offered with a price range of Rp1,650 to Rp1,870 per share.

The initial bid or bookbuilding starts on Monday, November 25 to Tuesday, December 3, 2024. The plan, 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 new share offering, and IDR 4.24 trillion from the offering of Shareholders. Seller.

The company will allocate funds obtained from the IPO for several purposes. Around 60 percent will be used for principal debt payments, 30 percent allocated for the opening costs of new shops in the Jabodetabek, Java, Sumatra, Sulawesi, Kalimantan, Nusa Tenggara, Papua, and Maluku Islands areas. While the remaining 10 percent 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 an aggressive expansion strategy.

"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 about 400 more stores. This proves our ability to continue to accelerate growth and reach more customers in various regions," explained Edwin.

The company's revenue in the period 2021 to 2023 grew with CAGR of 109 percent, increasing from Rp894 billion to Rp3.9 trillion. In addition, net profit shows a significant change, from a loss of Rp80 billion in 2021 to a profit of Rp353 billion in 2023.

The increase in operational effectiveness and expansion strategy carried out by the company resulted in healthy cash flow, increasing to IDR 291 billion by the end of 2023, compared to IDR 132 billion in 2022.

As additional information, as of June 30, 2024, the company has posted revenues of IDR 3.2 trillion and net profit of IDR 534 billion, with a strong cash flow position of IDR 361 billion.

Based on data from Frost & Sullivan, the non-grocery retail segment in Indonesia has a Total Addressable Market (TAM) of USD18.4 billion, with the household appliances segment contributing USD 1.4 billion.

"The non-grocery retail segment is estimated to grow with a CAGR of 8% in the 2023-2028 period, driven by positive economic growth in Indonesia, large populations and continuing to increase, rapid urbanization, and increased income levels. We are in a strong position to take advantage of this momentum," said Edwin.

With a market penetration rate of 1.9% in 2023, MR. DIY sees a great opportunity to continue to expand its market share in the non-grocery retail segment.

"This IPO is not only about business growth, but also about creating a positive impact for the people of Indonesia. With this step, we are optimistic that MR. DIY will continue to be a reliable partner for customers, the public and shareholders," concluded Edwin.