KUALA LUMPUR (Aug 12): Fashion group Carlo Rino Group Bhd (KL:CRG) said it has secured Bursa Malaysia's approval for its proposed transfer from the LEAP Market to the ACE Market.

In a filing on Monday, Carlo Rino said the exchange has given the go-ahead for the transfer of the listing of the company's entire enlarged issued share capital totalling 977.52 million shares.

The proposed transfer will entail an initial public offering (IPO), comprising 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 by Carlo Rino in April.

All in all, the listing would offer investors a 26.58% stake in the company. Carlo Rino first proposed the transfer to ACE Market in August last year, after being listed on the LEAP Market since November 2018.

Carlo Rino mainly designs and sells women’s handbags, footwear, and accessories under the “Carlo Rino” and “C.Rino” (for eyewear only) brands 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 (FY2023), the company made a net profit of RM23.85 million on the back of RM113.53 million in revenue. Gross profit margin was 61.71% while profit before tax margin was 27.7%.

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

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 (KL:BONIA).

TA Securities has been appointed as the principal adviser, sponsor, underwriter and placement agent for the IPO.

Shares of Carlo Rino closed unchanged at 29 sen on Monday, giving it a market capitalisation of RM 233.64 million.