By Liz Lee
KUALA LUMPUR, Oct 26 (Reuters) - Shares of Malaysian home improvement retailer MR D.I.Y. Group Bhd MRDI.KL briefly fell as much as 6.25% in their market debut on Monday, but later rose above the IPO price, in what is the country's largest offering in more than three years.
The shares hit a low of 1.50 ringgit after the opening bell but rose to as high as 1.80 ringgit in the first hour of trade, above the initial public offering (IPO) price of 1.60 ringgit per share.
The company had raised 1.5 billion ringgit ($361.45 million) through the exercise, giving it a market value of 10 billion ringgit. It is among the four major market listings in Malaysia so far this year.
Its IPO was oversubscribed by 3.91 times of the 941.49 million shares offered, with the institutional portion oversubscribed by 4.71 times.
Speaking at a virtual press briefing on Monday, its Chief Executive Officer Adrian Ong said the company was on track to achieve the target of adding 307 new stores in the next two years.
"Our business is designed to grow, and it will grow for a number of reasons," he said, referring to the positive growth outlook for the home improvement sector.
MR D.I.Y. joins a number of other Southeast Asian companies planning IPOs this year, including Philippines' fibre broadband provider Converge ICT Solutions Inc CNVRG.PS. The company's shares listed on Monday after a $600-million IPO.
The IPO of MR D.I.Y. had attracted more than a dozen cornerstone investors, including funds under BlackRock Inc, JPMorgan Asset Management and AIA Bhd.
(Reporting by Liz Lee; Editing by Kim Coghill and Uttaresh.V)
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