Indonesian arm of Malaysia's Mr DIY drops on market debut
Adds context, background and details of IPO in paragraph 2, 4 to 11
By Stefanno Sulaiman and Yantoultra Ngui
JAKARTA/SINGAPORE, Dec 19 (Reuters) -The Indonesian arm of Malaysia-based home improvement retailer Mr DIY Group MRDI.KL dropped in its stock market debut on Thursday after raising 4.16 trillion rupiah ($257.6 million) in Indonesia's biggest listing in more than a year.
The market debut came against the backdrop of broad weakness in Asian stocks after the U.S. Federal Reserve cautioned it would ease the pace of rate cuts in the coming year. Bond yields rose and the dollar was perched near a two-year high on Thursday.
Shares of Daya Intiguna Yasa MDIY.JK, the sister company of Mr DIY, opened at 1,550 rupiah, 6% lower than its initial public offering price of 1,650 rupiah a share, before sliding as much as 24.8% to 1,240 rupiah on the Jakarta stock exchange.
The stock recovered and is now 1.8% lower at 1,620 rupiah a share, while the local benchmark stock index .JKSE shed 1.53%.
Daya Intiguna Yasa offered 10% of its equity, or up to 2.52 billion shares, and planned to use the majority of the IPO proceeds to repay a bank loan, followed by launching more stores and for working capital, according to its IPO prospectus.
The company has more than 900 stores across Indonesia since opening its first in 2017, its website showed.
Its net profit surged 253% 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 was Indonesia's largest in more than a year, following Amman Mineral Internasional's AMMN.JK listing in July 2023, according to data compiled by LSEG.
IPO proceeds raised in Indonesia, Southeast Asia's biggest economy, dropped 83% to $616.2 million this year from $3.55 billion in 2023, LSEG data showed.
The drop came against the backdrop of Indonesia's elections and leadership transition this year.
CIMB Niaga Sekuritas and Mandiri Sekuritas are the IPO's underwriters.
($1 = 16,150.0000 rupiah)
Reporting by Stefanno Sulaiman in Jakarta and Yantoultra Ngui in Singapore; Editing by Jacqueline Wong and Muralikumar Anantharaman
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