Mr. DIY plans sukuk issuance of up to MYR5 billion

Mr. DIY plans sukuk issuance of up to MYR5 billion

MR D.I.Y. Group (M) Berhad, Malaysia’s largest home improvement retailer, has announced plans to issue sukuk (Islamic bonds) with a value of up to MYR5 billion, signaling its continued focus on capital raising to support expansion and operational needs. The move aligns with the company’s long-term growth strategy, which includes aggressive store openings and market share consolidation. As of FY2025, the company reported RM4.95 billion in revenue and RM632.69 million in net profit, with a 6.5% year-on-year revenue increase driven by an 8.4% rise in store count to 1,556 outlets.

The sukuk issuance follows MR D.I.Y.’s RM1.5 billion IPO in 2020, which funded debt repayments and operational expansion, including plans to open 307 new stores by 2021. Post-listing, the company adopted a dividend policy targeting 40% of earnings returned to shareholders, a framework later adjusted to include higher payouts, such as the 120% dividend distribution in FY2025. The proposed sukuk issuance may further diversify the company’s funding sources, complementing its existing low gearing ratio of 0.22 times post-IPO.

MR D.I.Y. has demonstrated resilience in challenging markets, maintaining a 29.1% market share in Malaysia’s home improvement sector as of 2019. Its expansion strategy includes disciplined site selection and efficiency initiatives, with plans to open 155 new stores in FY2026. The sukuk issuance is expected to support these ambitions while adhering to Islamic financial principles, reflecting the company’s alignment with Malaysia’s robust domestic bond market.

The company’s strong financial performance, coupled with its growth-oriented capital structure, positions it to leverage sukuk as a tool for sustainable expansion in both domestic and international markets.