KUALA LUMPUR (March 14): The public portion of Prolintas Infra Business Trust’s initial public offering (IPO) of 27.5 million units was oversubscribed by 3.59 times after receiving a total of 7,211 applications for 126.17 million units, with a total value of RM119.9 million.
Under the allocation for the Malaysian public, the Bumiputera portion received a total of 2,881 applications for 32.34 million units, representing an oversubscription rate of 1.35 times, while 4,330 applications for 93.83 million units were received under the other Malaysian public portion, representing an oversubscription rate of 5.82 times, said Prolintas in a statement on Thursday (March 14).
The IPO was priced at 95 sen per share, valuing the highway concession owner at RM1.05 billion.
Meanwhile, Prolintas Infra said the institutional offering, which comprises 422.95 million units made available to institutional and selected investors, including Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), has been fully subscribed.
“We are proud of the exceptional subscription response achieved by Malaysia's first listed business trust, Prolintas Infra Business Trust's IPO, which reflects confidence in our business model and growth prospects. We are deeply humbled by the trust placed in us and remain committed to delivering strong returns and value to our unitholders,” said Projek Lintasan Kota Holdings Sdn Bhd chief executive officer Datuk Mohammad Azlan Abdullah.
There are eight cornerstone investors secured for the IPO, namely Permodalan Nasional Bhd, AHAM Asset Management Bhd, AIIMAN Asset Management Sdn Bhd, Lembaga Tabung Haji, Maybank Asset Management Sdn Bhd, Maybank Islamic Asset Management Sdn Bhd, Kenanga Investors Bhd, and Kenanga Islamic Investors Bhd. They collectively subscribed for 70.9% of the institutional offering.
Prolintas Infra said the remaining units available from institutional offering, including the overallotment option, have received “overwhelming” demand from investors.
“It comprises mostly long-term institutional investors, with an oversubscription rate of approximately 1.5 times,” said the business trust.
AmInvestment Bank Bhd is the principal adviser, lead bookrunner, joint bookrunner, managing underwriter and joint underwriter for the IPO, which is seeking to raise RM445 million from the first-time share sales exercise.
CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are joint bookrunners and joint underwriters for the IPO, while RHB Investment Bank Bhd is the joint underwriter for the IPO.
The business trust comprises four toll highways, namely Ampang-Kuala Lumpur Elevated Highway (Akleh), Guthrie Corridor Expressway (GCE), Lebuhraya Kemuning-Shah Alam (LKSA), and Sistem Lingkaran Lebuhraya Kajang (Silk).