KUALA LUMPUR (Oct 28): Fashion retailer Carlo Rino Group Bhd (KL:CRG) on Monday said that it has inked an underwriting agreement with TA Securities Holdings Bhd for the transfer of its listing from Bursa Malaysia’s LEAP Market to the ACE Market, scheduled in the fourth quarter this year.

Under the agreement, TA Securities will underwrite 49.68 million shares, comprising 48.88 million to be offered to the Malaysian public via balloting and 800,000 to be subscribed by Carlo Rino's directors.

“This IPO represents Carlo Rino’s solid foundation and our ambitious plans for future growth. With the proceeds, we aim to expand our flagship boutique and enhance our operational infrastructure,” Carlo Rino managing director Datuk Seri Chiang Fong Yee said in a statement.

Carlo Rino is a designer, distributor and retailer of a wide range of women's handbags, footwear, and accessories under the brand names Carlo Rino and C.Rino (for eyewear). 

Listed on the LEAP Market since November 2018, the group made a net profit of RM23.85 million for its financial year ended June 30, 2023 (FY2023), on the back of RM113.53 million in revenue. Gross profit margin was 61.71%, while profit before tax margin was 27.7%.

The proposed IPO involves the issuance of 171.87 million new shares, representing 17.58% of the group’s enlarged share capital of 977.52 million shares, at a price to be determined.

The remaining 122.19 million shares, representing 12.5% of its enlarged share capital, will be made available for application by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

Proceeds from the IPO will be used to build and fit out Carlo Rino’s new flagship boutique in Kuala Lumpur and other facilities, including IT and security systems; refurbish boutiques and counters at departmental stores, as well as working capital.

Shares of Carlo Rino closed unchanged at 26.5 sen on Monday, giving it a market capitalisation of RM209.54 million.