PETALING JAYA: Main Market-bound MTT Shipping and Logistics Bhd does not see ongoing global disruptions as a threat to its business, but rather as supportive, underpinned by tight vessel supply and its ability to pass on rising fuel costs to customers.
Managing director Ooi Lean Hin said disruptions have generally been positive for the shipping industry as they tighten capacity.
“The main impact we face is rising fuel costs, but the industry has a mechanism – the bunker adjustment factor (BAF) – which allows us to pass these costs through,” he told a press conference in conjunction with the group’s prospectus launch yesterday.
The BAF is a floating surcharge imposed by shipping lines to account for volatile bunker fuel prices.
MTT Shipping is seeking to raise RM652.51mil from its initial public offering (IPO), with the bulk of proceeds earmarked for fleet expansion.
The container liner operator has set its IPO price at RM1.03 per share, involving the issuance of 633.5 million new shares, representing 25.3% of its enlarged share capital.
Of this, 2.5% is allocated to retail investors, while 22.8% is set aside for institutional investors.
An over-allotment option could increase the offering to 29.1% of the enlarged share capital, with the additional 3.8% stake provided by promoters and substantial shareholders for 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 RM27.8mil will be used for listing expenses.
Ooi said the group is expanding its fleet to capture growing demand in intra-Asia trade, supported by ongoing supply chain realignment.
“Production is shifting to South-East Asia under the China plus one strategy and this is driving cargo flows within the region,” he said, adding that further growth is expected over the next 18 to 24 months as new manufacturing capacity comes onstream.
MTT Shipping operates primarily in the feeder segment, focusing on vessels below 4,000 twenty-foot equivalent units, where supply remains tight.
Citing industry data, Ooi said new vessel deliveries up to 2030 will only replace about 38% of ageing ships in this segment, sustaining a shortage of capacity.
“This means older ships cannot be phased out without sufficient newbuilds coming in, which keeps the market tight,” Ooi said.
The group operates a fleet of 26 vessels, of which 25 are owned and one is chartered, with 15 deployed within its own service network and 11 chartered out to other liner operators.
Its chartering counterparties include major global players, which use MTT Shipping’s vessels as feeders within their regional networks.
Ooi noted that charter rates remain firm amid the tight supply of vessels, with rates continuing to edge higher.
Despite geopolitical tensions in the Middle East, Ooi said MTT Shipping has no direct exposure to Gulf trade, although any prolonged disruption in the Strait of Hormuz could have broader economic implications through higher oil prices.
“For now, our cargo volumes remain stable,” Ooi said.
On the domestic front, the group continues to strengthen its position, with Malaysia accounting for about 40% of its revenue.
Ooi said MTT Shipping’s market share in domestic cabotage has risen to about 46%, and he expects further growth supported by infrastructure developments in Sabah and Sarawak.
For the nine months ended Sept 30, 2025 (9M25), the group reported a revenue of RM961.4mil, up from RM874.96mil in the previous corresponding period, while net profit rose to RM234.67mil from RM186.86mil.
The group commands a profit after tax margin of over 20%, with about 24.5% in 9M25.
Upon listing, MTT Shipping’s enlarged share capital will comprise 2.5 billion shares, giving it a market capitalisation of RM2.6bil.
The group targets a dividend payout ratio of at least 50% of profit after tax.
Applications for the IPO will close on April 3 for retail investors and April 6 for institutional investors, with listing slated for April 21.
