By Kimberley Kao

Mr. D.I.Y. Group $(MIMI)$'s sister company in Indonesia experienced a volatile trading debut following one of the country's largest initial public offerings this year.

Shares of Daya Intiguna Yasa dropped as much as 25% in early trading on Thursday before recovering, and were last up 9.1%, outperforming the Jakarta Composite Index, which was down 1.6%.

The home improvement retailer's initial public offering raised 4.16 trillion rupiah, equivalent to around $256.7 million, and was 1.04 times oversubscribed, according to data from the Indonesia Stock Exchange.

Daya Intiguna Yasa has the same major shareholder as the Malaysian home improvement retailer Mr. D. I. Y. The company plans to allocate 60% of the IPO proceeds for partial debt repayment to Bank CIMB Niaga, 30% to open new stores, and 10% for working capital.

Mr. D.I.Y.'s Indonesian business, which operates more than 900 stores in the country, reported a net profit of IDR534.7 billionfor the first six months of the year.

CIMB Niaga Sekuritas and Mandiri Sekuritas acted as underwriters for the IPO.

Indonesia's IPO market has been sluggish this year amid political uncertainty surrounding elections, leading to cautious investor sentiment, according to an EY report in October.

The country's largest IPO this year, Adaro Andalan, raised about $271.9 million.

For the first three quarters of the year, 34 listings in Indonesia raised a total of $300 million, significantly lower than the 66 offerings that raised a total of $3.3 billion during the same period last year, EY noted.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

December 19, 2024 02:00 ET (07:00 GMT)

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