KUALA LUMPUR (Dec 9): Fashion firm Carlo Rino Group Bhd (KL:CRG) saw its initial public offering (IPO) in conjunction with its listing transfer to the ACE Market of Bursa Malaysia oversubscribed by 18.43 times for the 48.88 million new shares offered to the Malaysian public.
The company is scheduled to be listed on the ACE Market of Bursa Malaysia on Dec 18, with its IPO aiming to raise RM46.4 million. The listing offers investors up to a 17.58% stake in the company listed on the LEAP Market since 2018.
Carlo Rino received 13,395 applications for 949.87 million shares from the Malaysian public, according to its statement on Monday. Of these, a total of 6,720 applications for 397.47 million shares were received for the Bumiputera portion, representing an oversubscription rate of 15.26 times.
Meanwhile, a total of 6,675 applications for 552.42 million shares were received for the other Malaysian public portion, representing an oversubscription rate of 21.60 times.
Additionally, the 800,000 shares made available for application by independent non-executive directors have been fully subscribed, Carlo Rino said.
The notices of allotment will be mailed to all successful applicants by Dec 16, 2024.
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.
TA Securities is the adviser, sponsor, underwriter and placement agent for the IPO.