Fashion retailer Jordone Group seeks Bursa listing

PETALING JAYA: Jordone Group Bhd (JGB), which specialises in brand building, concept development, fashion designing, marketing, distribution and retailing for casual and business wears, is seeking a listing on Bursa Malaysia Main Market.

JGB currently develops, manufactures and markets brands such as Snails Original, Chargers Outfitters, Snails & Sons, Jeep, Feraud, BIEM, and Budweiser.

According to its draft prospectus submitted to the Securities Commission (SC), the group has proposed an initial public offering (IPO) of 10.813 million new shares, about 13.52% of its enlarged issued and paid-up capital. A total of 1.8 million of these shares will be made available via private placement.

JGB has also offered 9.8 million of its existing shares for sale. About 18.37% of the group's existing shares will be offered through private placement. For every two shares held, one warrant will be given. However, the offer price and date of the IPO have yet to be announced.

JGB was formed on Dec 26, 2006 as a public limited company under the name of JGB. It was then converted into a private limited company on Sept 22, 2008 under Jordone Group Sdn Bhd. On Dec 6 last year, the company was converted into a public limited company under its original name to facilitate its listing.

The group's principal activities are carried out via its wholly owned subsidiaries Active Fit Sdn Bhd, Exis Apparel Sdn Bhd and Jordone Corp Sdn Bhd. JGB also wholly owns Quality Way Garments Sdn Bhd. Its activities encompass the international marketing and export of apparel for the group while Siliconpro Lab Sdn Bhd, in which JGB's subsidiary Jordone owns a 46.45% stake, carries out the manufacturing and distribution of silicon and plastic products and components.

Siow Sea Nen, the group's founder and managing director, will hold 73.60% direct stake and 0.64% indirect stake after the IPO.

The other substantial shareholder of the group is Siow's wife, Chen Mui Yong. She is currently a senior manager of the group's human resources and administration department. She holds a 0.64% direct stake and 73.60% indirect stake in the group.

JGB recorded revenue of RM116.5mil for the 2011 financial year, which was a 16.47% increase from the preceding year. Net profit stood at RM8.09mil compared with RM5.15mil in 2010.

Proceeds from the IPO will be utilised for the repayment of JGB's term loan, working capital and estimated listing expenses.

The term loan has an outstanding balance of RM8.32mil as at latest practicable date which matures in April 2021.