Creador-backed Malaysian retailer Mr. D.I.Y. exploring $362m IPO

An employee assists a customer at Mr. DIY Sdn. hardware store inside CapitaLand Ltd.'s Westgate Mall in Singapore. Photographer: Wei Leng Tay/Bloomberg

Malaysia-based home improvement retailer Mr. D.I.Y. is exploring an initial public offering to raise about 1.5 billion ringgit ($362 million), according to an industry source.

The source said the retailer, backed by Malaysia-based private equity firm Creador, is considering listing the business in either Malaysia or Hong Kong, and the IPO could happen by the fourth quarter of this year.

The development was first reported by Bloomberg, which said the IPO could value Mr. D.I.Y. at 10 billion ringgit. The report also added that the retailer is only looking to list its domestic operations. According to a Reuters report, Creador invested in the retailer in 2016.

Founded in 2005, Mr. D.I.Y. has about 600 stores across Malaysia, Thailand, Indonesia and Brunei. In late 2018, it opened its first stores in Singapore and the Philippines.

Several private equity-backed businesses in Malaysia are looking to go public this year, including QSR Brands (M) Holdings that operates KFC and Pizza Hut outlets in the region, which is backed by CVC Capital Partners. Affinity Equity Partners-backed poultry producer Leong Hup International Bhd is also looking to list on Bursa Malaysia soon.

Based in Kuala Lumpur, Creador was founded by Brahmal Vasudevan, the former managing director of India-based PE firm ChrysCapital, in 2011. The firm focuses on long-term investments in growth-oriented companies in South and Southeast Asia and has made over 31 investments across Malaysia, Indonesia, the Philippines, Vietnam and India. It currently boasts an AUM of $1.4 billion.

In Malaysia, Creador has invested in local fashion brand Bonia Group, credit firm CTOS Holding, specialty bakery Bake With Yen, as well as pharmacy chain BIG Pharmacy.

DEALSTREETASIA had earlier reported that Creador is currently raising its fourth vehicle, which has a hard cap of $550 million. It recently secured $50 million from existing investor Asian Development Bank (ADB), bringing the total amount raised so far to $533 million, already exceeding its initial target of $500 million. The fund is expected to hit its final close by early February.

Creador had earlier exited its investment in Malaysian payments company GHL Systems Bhd, selling its stake to Actis and generating a 2.8x return an IRR of 40 per cent in Malaysian ringgit terms or a 2.1x return and an IRR of 27 per cent in US dollar terms.

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