KUALA LUMPUR (Nov 28): Carlo Rino Group Bhd (KL:CRG) is selling its shares at 27 sen apiece in an initial public offering (IPO) that could raise over RM46.4 million, according to its prospectus unveiled on Thursday.
The IPO, part of its listing transfer to the ACE Market, comprises a public issue that will raise RM46.4 million, the prospectus showed. The listing offers investors up to a 17.58% stake in the company listed on the LEAP Market since 2018. An offer for sale of existing shares planned earlier was not followed through.
Applications for the IPO shares will close on Dec 5, and the listing is scheduled for Dec 18.
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.
At the IPO price, Carlo Rino would be valued close to 14 times its trailing earnings. The company made a net profit of RM19.31 million for the financial year ended June 30, 2024 (FY2024).
More than half of the funds to be raised have been earmarked for working capital including to stock up inventory and as marketing expenses. About one-third will be set aside for construction and fitting-out of a new flagship boutique and other facilities.
The rest will be used for refurbishment of boutiques and counters at departmental stores as well as for maintenance of IT infrastructure and to defray listing expenses, the prospectus showed.
The public issue involves 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.
The offer for sale of existing shares disclosed in its draft prospectus in April would have raised RM23.76 million for its selling shareholder Datuk Seri Chiang Fong Yee — the current managing director and son of Carlo Rino founder Chiang Sang Sem, who also established Bonia Corp Bhd (KL:BONIA).
TA Securities is the adviser, sponsor, underwriter and placement agent for the IPO.