MTT Shipping Opens Slightly Higher At RM1.08 In Main Market Debut
KUALA LUMPUR, April 21 (Bernama) -- MTT Shipping and Logistics Bhd opened at RM1.08 in its Main Market debut on Bursa Malaysia today, five sen above its initial public offering (IPO) price of RM1.03.
The company raised RM652.5 million from its IPO, of which RM624.7 million is allocated for the purchase of at least 12 container vessels over the next three years following its listing.
Ahead of listing, MTT Shipping’s IPO was oversubscribed by 2.7 times.
Managing director Ooi Lean Hin said the company’s listing debut was a positive start, noting that price movements on the first day are expected.
“The opening is a good and auspicious start. Price fluctuations are normal when companies are newly listed, but we are not focused on short-term movements. Our fundamentals remain strong,” he said at a press conference after the listing ceremony.
On its immediate priorities, he said the group will focus on executing its expansion plans, particularly in growing its fleet capacity.
“We are a fast-growing company, and the funds raised are mainly to support our expansion. We currently operate 25 vessels with a relatively young fleet, and we plan to acquire more container ships to expand our service routes,” he said.
Commenting on industry challenges, Ooi said rising oil prices due to the United States-Iran conflict could have a broader impact on the global economy, but the company remains resilient.
He noted that while higher fuel costs affect operations, the group is able to pass on the increase to customers through bunker adjustment mechanisms.
“At the same time, capacity has tightened in the market, which has supported charter rates. We are seeing improvements in rates, with some recent renewals recording increases of more than 10 per cent,” he said.
Ooi added that the company is not directly exposed to conflict-affected areas and has not experienced disruptions to its operations.
As for the company’s outlook, he said the shipping industry is expected to remain stable in the near term, barring prolonged geopolitical tensions and sustained high oil prices.
“Overall, the market remains supported by intra-Asia trade growth, particularly between China, Southeast Asia and India, driven by ongoing supply chain realignments,” he said.
-- BERNAMA