Kuala lumpur: MTT Shipping and Logistics Bhd (MTTSL), a container liner shipping operator, has announced its plans to raise RM652.5 million through the issuance of 633.5 million new ordinary shares. This move marks the largest initial public offering (IPO) in Malaysia's transportation and logistics sector since the listing of Westports Holdings Bhd in 2013.
According to BERNAMA News Agency, MTTSL's IPO is scheduled for listing on the Main Market of Bursa Malaysia Bhd on April 26. It represents a significant milestone with its market capitalisation and deal size, following in the footsteps of Westports, which was listed on Bursa Malaysia's Main Market on October 18, 2013. Westports had raised approximately RM2.03 billion at a final price of RM2.50 per share, making it one of Malaysia's largest listings that year.
MTTSL's market capitalisation is estimated at approximately RM2.6 billion based on an enlarged issued share capital of 2.5 billion shares and an IPO price of RM1.03 per share. The executive chairman of MTTSL, Datuk Seri Ong Kean Lee, stated that 95.7 per cent of the proceeds from the IPO are allocated for acquiring at least 12 newbuild container vessels, with the remaining funds used for listing-related expenses.
Datuk Seri Ong Kean Lee highlighted that the IPO proceeds will enable MTTSL to expand its operations and rejuvenate its existing fleet. This strategic expansion aims to widen and extend the company's footprint both within and beyond Southeast Asia, capitalising on the increasing demand for domestic and regional trade. The executive chairman emphasized that the timing of this expansion is ideal, given the evolving nature of regional trade and the strong demand for reliable shipping capacity across key routes.
The acquisition of new vessels will enhance MTTSL's service offerings and support the growing movement of goods across the markets it serves. These investments are expected to bolster the company's operational capacity, strengthen its financial position, and better position it to seize opportunities arising from growing regional trade.
MTTSL has also announced a dividend policy targeting a payout of at least 50 per cent of its profit after tax. The IPO is backed by CIMB Investment Bank Bhd, acting as the principal adviser, joint global coordinator, joint bookrunner, managing underwriter, and joint underwriter. 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 serving as the joint bookrunner and joint underwriter.