PETALING JAYA: Swift Haulage Bhd, in which the Retirement Fund Inc (Kwap) has a 13.61% stake, will only be offering 2% of its enlarged share base to the Malaysian public in its upcoming initial public offering (IPO) on the Main Market.
The bulk of the logistic company’s shares will be snapped up by institutional funds and persons related to the company, based on information in the company’s draft prospectus found on the Securities Commission’s website.
The proceeds from the proposed IPO will go towards the construction of a new warehouse in Port Klang Free Zone, the acquisition of 30 units of prime movers and the purchase of land for future expansion.
In addition, a portion of the proceeds will also be used to partially pare down the group’s trade financing facilities amounting to RM112.13mil.
Swift Haulage announced that the IPO will involve the sale of 314.14 million ordinary shares, comprising 157.14 million new shares and 157 million existing shares.
This is equivalent to 35.3% of the enlarged share base.
Up to 275.2 million shares will be involved in the institutional offering, representing 30.93% of the enlarged share capital.
Meanwhile, about 38.93 million shares would be offered to retail investors, representing 4.37% of the enlarged share capital.
Of this, a total of 17.79 million shares or 2% of the enlarged shares will be made available for the Malaysian public.
The balance of shares are reserved from certain individuals related to the company, including the directors and employees.
Following the proposed IPO, while Kwap would remain as a substantial shareholder, its shareholding in Swift Haulage will be diluted to 9.12%.
Persada Bina Sdn Bhd, which is controlled by Sarawak’s former police commissioner Datuk Md Yusoff Jaafar, will own a 38.12% equity interest in Swift Haulage upon IPO, down from 61.99% currently.
“Moving forward, our strategic growth direction is focused on leveraging on our core competencies and strengths in integrated logistics as a platform to address opportunities and grow our business.
“From that perspective, our strategies and plans will be based on strengthening and expanding our operational facilities including warehousing and container depot as well as expanding our fleet operations,” the group said in the draft prospectus.
Swift Haulage pointed out that it plans to construct a new warehouse on a piece of 30-year leasehold land of about 300,564 sq ft in Port Klang Free Zone.
“Upon completion of the warehouse, we will relocate our existing warehousing operations at the Westport Warehouse, which is currently under rented premises, to this new facility.
“The new warehouse has a larger capacity with a planned floor space of about 178,000 sq ft compared to the Westport Warehouse, which has 54,300 sq ft,” it said.