THE Indonesian arm of Malaysia-based home improvement retailer Mr DIY Group shook off a wobbly start to rise on its stock market debut on Thursday (Dec 19).
The listing came against the backdrop of broad weakness in Asian stocks after the US Federal Reserve cautioned it would ease the pace of rate cuts in the coming year. Bond yields rose and the US dollar was perched near a two-year high on Thursday.
Shares of Daya Intiguna Yasa, the sister company of Mr DIY, opened at 1,550 rupiah, 6 per cent lower than its initial public offering (IPO) price of 1,650 rupiah a share, before sliding as much as 24.8 per cent to 1,240 rupiah on the Jakarta stock exchange.
The stock recovered to be 9 per cent higher by the midday break at 1,800 rupiah a share, outperforming the local benchmark stock index’s 1.63 per cent fall. It increased as much as 15.2 per cent to 1,900 rupiah.
Daya Intiguna Yasa offered 10 per cent of its equity, or up to 2.52 billion shares, raising 4.16 trillion rupiah (S$347.8 million) in the IPO.
It plans to use the majority of the proceeds to repay a bank loan, followed by launching more stores and for working capital, according to its IPO prospectus.
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The company has more than 900 stores across Indonesia since opening its first in 2017, its website showed.
Its net profit surged 253 per cent to 534.22 billion rupiah in the first six months of this year from 151.19 billion rupiah in the same period a year ago, its prospectus showed.
Daya Intiguna Yasa’s IPO followed the listing of Adaro Andalan Indonesia earlier this month, which soared 20 per cent on its debut day. A positive debut by Daya Intiguna Yasa could also bode well for upcoming listings in Indonesia.
IPO proceeds raised in Indonesia, the region’s biggest economy, dropped 83 per cent to US$616.2 million this year from US$3.55 billion in 2023, LSEG data showed.
The decline came against the backdrop of Indonesia’s elections and leadership transition this year.
CIMB Niaga Sekuritas and Mandiri Sekuritas are the IPO’s underwriters. REUTERS
