KUALA LUMPUR (Nov 11): Container shipping and logistics operator MTT Shipping and Logistics Bhd is eyeing a Main Market listing on Bursa Malaysia.

According to its draft prospectus filed with the Securities Commission on Tuesday, the group said the initial public offering (IPO) will help it raise funds to finance the acquisition of new container vessels as part of its regional expansion strategy.

The group — which provides container liner shipping, vessel chartering, and container storage and related services — currently operates 40 subsidiaries, one jointly-controlled entity and eight associates.

MTT Shipping and Logistics’ IPO would involve the issuance of  633.5 million new shares, comprising an institutional offering of 571 million shares and a retail offering of 62.5 million shares. The IPO price and indicative market capitalisation upon listing have yet to be determined.

There will be no offer for sale.

Overall, the listing offers investors up to a 25.3% stake in the company that made a net profit of RM250.38 million on the back of RM1.20 billion revenue for the financial year ended Dec 31, 2024 (FY2024).

Funds raised from the new share issuance have been earmarked for the acquisition of container vessels and to defray listing-related expenses. It said the listing will support its strategy to expand its container liner network within and beyond the Southeast Asian region, particularly into the Indian subcontinent and southern China.

The company plans to acquire at least 10 container vessels of varying capacities over the next 36 months, financed through a combination of internally generated funds, bank borrowings and proceeds from sukuk wakalah and the IPO.

It has already committed to purchase four newbuild vessels — two geared and two gearless — with capacities of 1,400 to 1,462 twenty-foot equivalent units (TEUs), at a total cost of RM339.5 million, scheduled for delivery between December 2026 and December 2027.

The group also intends to acquire an additional 1,400-TEU geared vessel for delivery in 2028 to replace older ships in its fleet — including MTT Kuching Dua, MTT Bintulu, MTT Pulau Pinang and MTT Haiphong — which have an average age of 27 years.

Beyond renewal, MTT Shipping and Logistics aims to acquire five larger vessels, comprising up to three 3,300-TEU ships and two 9,000-TEU vessels, with delivery targeted within 18 to 36 months after listing.

The group is targeting a dividend payout ratio of 40% of net profit for each financial year, subject to working capital, maintenance and capital expenditure requirements.

CIMB Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the IPO, while CLSA Securities Malaysia Sdn Bhd serves as joint global coordinator and bookrunner.