Carlo Rino Group Bhd will raise more funds prior to its listing transfer to the ACE Market from the LEAP Market through an initial public offering involving a public issue of 171.87 million new shares and an offer for sale of up to 87.98 million existing shares.

KUALA LUMPUR (April 16): Carlo Rino Group Bhd has filed for an initial public offering (IPO) that would raise more funds for the apparel company as part of its listing transfer to the ACE Market from the LEAP Market.

The IPO involves a public issue of 171.87 million new shares and an offer for sale of up to 87.98 million existing shares, according to the draft prospectus filed with Bursa Malaysia. All in all, the listing would offer investors a 26.58% stake at an undisclosed price in the company listed on the LEAP Market since November 2018.

“We undertake our IPO in conjunction with our transfer of listing,” Carlo Rino said. “We have obtained approvals from our shareholders and Bursa Securities for the corporate exercise.”

Carlo Rino mainly designs and sells women’s handbags, footwear, and accessories out of 36 boutiques in shopping malls and five boutiques at premium outlets in Malaysia. The company also consigns its product to 82 departmental store counters and markets its products online.

For its financial year ended June 30, 2023, the company made a net profit of RM23.85 million on the back of RM113.53 million revenue. Gross profit margin was 61.71% while profit before tax margin was 27.7%.

Under the proposed public issue, the company has set aside 48.88 million new shares for the public, 800,000 shares for eligible persons, and 122.19 million shares through private placement to Bumiputera investors.

Proceeds from the public issue have been earmarked for construction and the fitting out of a new flagship boutique, refurbishment of existing boutiques and counters at departmental stores, as well as for maintenance of IT infrastructure.

The company also allocated some of the proceeds as working capital including advertising and promotion expenses, and to defray listing expenses.

Meanwhile, proceeds from the offer for sale through private placement to select investors will accrue entirely to the selling shareholder Datuk Seri Chiang Fong Yee. He is the current managing director and son of Carlo Rino founder Chiang Sang Sem, who also established Bonia Corp Bhd.

TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.