MTT Shipping and Logistics targets RM652.5mil IPO to fund fleet expansion


From left: Affin Hwang Investment Bank Bhd chief executive officer Hanif Ghulam Mohammed, MTT Shipping and Logistics Bhd managing director ⁠Ooi Lean Hin, MTT Shipping and Logistics executive chairman Datuk Seri Ong Kean Lee, CIMB Investment Bank Bhd chief executive officer & regional head of investment banking Nor Masliza Sulaiman and CLSA Limited executive director of corporate finance & capital markets Peter Ng.

KUALA LUMPUR: Main Market-bound MTT Shipping and Logistics Bhd (MTTSL) aims to raise RM652.51mil from its initial public offering (IPO), with most of the proceeds earmarked for vessel acquisitions, alongside a greenshoe option of about 95 million shares, or 3.7% of the enlarged share base.

The integrated container shipping player, which dominates the Peninsular Malaysia to East Malaysia and Brunei route, has set its IPO price at RM1.03 per share, comprising entirely new shares with no offer for sale.

The listing entails public issuance of 633.5 million new shares, representing 25.3% of its enlarged share capital.

Of this, 2.5% is allocated to retail investors and 22.8% to institutional investors.

Meanwhile, an overallotment option could increase the offering to 29.1% of the enlarged share capital, with about 3.8% provided by a group of promoters and substantial shareholders, allocated solely to institutional investors.

According to its prospectus, about 95.7% of the IPO proceeds, or RM624.7mil, will be used to acquire at least 12 container vessels over the next three years, while the remaining 4.3%, or RM27.8mil, will be used for listing expenses.

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