EMPG Group Berhad is moving closer to becoming a publicly listed company after receiving approval from Bursa Malaysia Securities Berhad for its proposed listing on the ACE Market of Bursa Malaysia.

The Malaysian apparel group, which focuses on apparel retailing and wholesaling, is preparing to use the proposed initial public offering (IPO) to support its next phase of expansion and strengthen its multi-brand business model.

EMPG operates across several channels, including consignment counters throughout Malaysia, standalone retail stores in the Klang Valley and e-commerce platforms. Its wholesale business covers direct sales as well as apparel and fabric sourcing services.

The Group has developed a portfolio comprising both proprietary and licensed brands. Its own brands include Exhaust, Idexer, Silverland, Brittania, Ventine, Millward, Aplus, John Rider, Oxen, Elmer and MU-7, while its licensed portfolio includes Hummer and Pierre Cardin.

Under the proposed IPO, EMPG plans to issue 121.60 million new ordinary shares, alongside an offer for sale of 48.50 million existing shares.

The public issue will include 30.30 million new shares allocated to the Malaysian public through balloting. Half of this allocation will be reserved for Bumiputera investors.

Another 4.30 million new shares will be made available to eligible directors and employees of the Group through the pink form allocation.

Meanwhile, 75.75 million new shares will be offered through private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI). A further 11.25 million new shares will be placed with selected investors.

The offer for sale will involve 48.50 million existing shares, representing approximately 8.00% of the enlarged issued share capital, through private placement to selected investors.

EMPG Group Managing Director Loh Tau Sing said the approval from Bursa Securities represents an important milestone for the Group as it progresses towards the public capital market.

He said the Group has spent years building a diversified apparel platform supported by a broad portfolio of owned and licensed brands, as well as a nationwide retail presence serving different customer segments.

The proposed listing is expected to provide support for EMPG's expansion plans, including the development of its retail network, strengthening of its multi-brand strategy, improvements to its operational and logistics infrastructure and continued expansion of its product offering.

One of the key expansion targets outlined by EMPG is the establishment of 100 new consignment counters and 15 boutiques within 24 months from the date of listing.

The new outlets are expected to feature Hummer, Pierre Cardin and other existing brands within the Group's portfolio.

Apart from retail expansion, part of the IPO proceeds will be allocated towards additional working capital. The funds are expected to support the Group's day-to-day operating requirements, particularly the purchase of products for its in-house brands.

The proposed listing therefore represents more than a capital-raising exercise for EMPG. It forms part of the Group's broader strategy to expand its retail footprint, improve its operating capabilities and create a larger multi-brand apparel platform in Malaysia.

Berjaya Securities Sdn Bhd, formerly known as Inter-Pacific Securities Sdn Bhd, is acting as the Principal Adviser, Sponsor, Underwriter and Placement Agent for the proposed IPO. WYNCORP Advisory Sdn Bhd is the Corporate Finance Adviser.

With Bursa Securities approval secured, EMPG Group has reached another significant stage in its proposed ACE Market listing. Investors will be watching the next steps of the IPO process, including the eventual pricing, prospectus details and listing date.