MTTSL Targets RM652.5 Mln IPO, Largest Logistics Listing Since Westports
KUALA LUMPUR, March 26 (Bernama) – MTT Shipping and Logistics Bhd (MTTSL), a container liner shipping operator, plans to raise RM652.5 million through the public issue of 633.5 million new ordinary shares.
Slated for listing on the Main Market of Bursa Malaysia Bhd on April 26, MTTSL’s initial public offering (IPO) represents the largest IPO by market capitalisation and deal size in Malaysia’s transportation and logistics sector since Westports Holdings Bhd’s listing in 2013.
Westports was listed on Bursa Malaysia’s Main Market on Oct 18, 2013, at a final price of RM2.50 per share, raising approximately RM2.03 billion -- making it one of Malaysia’s largest listings that year, with its shares closing six per cent higher at RM2.65 upon debut.
Based on an enlarged issued share capital of 2.5 billion shares and an IPO price of RM1.03 per share, MTTSL’s market capitalisation upon listing is estimated at approximately RM2.6 billion.
Its executive chairman, Datuk Seri Ong Kean Lee, said 95.7 per cent of the proceeds are earmarked for the acquisition of at least 12 newbuild container vessels, and the rest will be used to defray listing-related expenses.
“As part of the group’s long-term strategic objectives to expand its operations and rejuvenate its existing fleet, the IPO proceeds will allow MTTSL to strategically widen and extend its footprint within and beyond Southeast Asia, and capitalise on the growing demand for domestic and regional trade,” he said after launching the IPO prospectus here today.
He added that the timing for this expansion is appropriate, as regional trade continues to evolve and demand for reliable shipping capacity across key domestic and regional routes remains strong.
The addition of these new vessels will enable MTTSL to enhance its service offerings further and support the growing movement of goods across the markets it serves.
“These investments will enable us to enhance our operational capacity, strengthen our financial position and better position us to capture opportunities arising from growing regional trade,” he said.
The group will also implement a dividend policy targeting a payout of at least 50 per cent of its profit after tax.
CIMB Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the IPO.
CLSA Ltd and CLSA Securities Malaysia Sdn Bhd are the joint global coordinators and joint bookrunners for the IPO exercise, while Affin Hwang Investment Bank Bhd is the joint bookrunner and joint underwriter.
-- BERNAMA