KUALA LUMPUR, Oct 2 (Reuters) - Malaysian home-improvement retailer Mr DIY has secured more than a dozen cornerstone investors, including BlackRock Inc, AIA Group Ltd and J.P. Morgan Asset Management for a market debut that could raise 1.5 billion ringgit ($360.75 million), sources said.
The initial public offering (IPO) would be the largest in Malaysia for more than three years. Lotte Chemical Titan raised 3.77 billion ringgit in July 2017.
Other cornerstone investors include Fidelity Investments and Aberdeen Standard Investments, one of four sources with knowledge of the deal said.
The company has set the offering at an indicative IPO price of 1.60 ringgit with the aim of raising around 1.5 billion ringgit, said sources, who declined to be named as the process is private.
One said some of the foreign funds are returning as IPO cornerstone investors in the Malaysian market after a few years of hiatus, keen on the Mr DIY’s business that sells household, hardware and electrical products at affordable prices in over 600 stores.
“They like the company and there is lots of interest in this sector which has done very well,” the source said. The business has performed during the COVID-19 pandemic as people spend more time at home and carry out improvements.
AIA declined to comment. Mr DIY, BlackRock, JP Morgan Asset Management, Fidelity Investments and Aberdeen Standard Investments did not immediately reply to a request for comment.
Mr DIY, backed by private equity firm Creador, in January listed a draft prospectus but in March decided to delay its listing before Malaysia went into a movement control order to curb the spread of the novel coronavirus.
It restarted its IPO process in July as business picked up after movement restrictions were eased from May.
The company will launch its prospectus next week.
$1 = 4.1580 ringgit Reporting by Liz Lee; editing by Barbara Lewis
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