KUALA LUMPUR (Aug 25): Creador Funds, through Hyptis Ltd, has placed out 235.1 million shares it owns in MR DIY Group (M) Bhd — its first placement since the home improvement retailer's listing in October 2020 — 48.3% more than the 158.5 million shares it originally intended to place out, following an accelerated bookbuilding exercise yesterday (Aug 24).

The placement was done at RM3.60 per share, according to a source close to the matter. This is the lower range of the RM3.60-RM3.68 per share the private equity fund had planned for the secondary placement — based on the term sheet sighted by The Edge.

The offer price represents a 5.3% discount to the closing price of the shares yesterday at RM3.80. Nonetheless, it is more than double its initial public offering (IPO) price of RM1.60 per share.

The entire offer size, which originally stood at about RM569.07 million with an upsize option, now totalled RM846.36 million.

MR DIY's share price had retreated from a peak of RM4.38 in April to hit a low of RM3.33 early this month. However, the stock has rebounded from the recent low in the last two weeks.

As at the noon break, the home improvement retailer's share price was 11 sen or 2.9% lower at RM3.69, with 2.99 million shares traded.

According to the company's IPO prospectus, Hyptis had agreed that it shall not offer its stake for sale for a period of six months from the date of listing of MR DIY. The six-month lock-up period has since lapsed as the company's shares were floated on Oct 26, 2020.

The shareholding of Hyptis is estimated to be at 12.77% of the home improvement retailer after the share placement. Prior to MR DIY's listing exercise in 2020, Hyptis owned an 18% stake in the company. Its stake went down to 15.3% as it offered shares for sale.

Notably, MR DIY was listed on Oct 26, 2020, coming onto Bursa as the largest IPO in three years. Then, based on the issue price of RM1.60 per share, MR DIY was valued at a market capitalisation of RM10 billion.

Since its listing, MR DIY's market capitalisation has ballooned to RM23.66 billion as of today, more than double the market capitalisation during its IPO.

For the second quarter ended June 30, 2021 (2QFY21), MR DIY's net profit swelled to RM82.13 million, up 44% from RM56.98 million a year ago. Revenue grew 47% to RM759.81 million for 2QFY21 from RM516.66 million for the corresponding period of the previous year.

MR DIY attributed the rise in revenue and net profit to the positive contribution from the opening of new stores. Its store network expanded to 827 stores in 2QFY21.