KUALA LUMPUR (April 7): MTT Shipping and Logistics Bhd has fixed its institutional and final retail price for its initial public offering (IPO) at RM1.03 per share.

This was decided following the completion of the bookbuilding process under the institutional offering on Monday, said CIMB Investment Bank on behalf of the group in a bourse filing. The retail offering closed on April 3.

MTT Shipping, slated for listing on Bursa Malaysia’s Main Market on April 21, will mark the country’s largest logistics-linked IPO in 13 years.

Based on its enlarged issued share capital of 2.5 billion shares and IPO price of RM1.03, the group is expected to debut with a market capitalisation of RM2.6 billion.

In a separate filing, CIMB IB said the over-allotment option providers have opted not to grant the over-allotment option. Hence, no stabilising manager will be appointed, and no price stabilisation measures will be undertaken for the IPO. Usually, if an IPO is very popular, the underwriters are allowed to sell an extra 15% of shares to meet that high demand, but this will not be the case for MTT Shipping.

The IPO aims to raise up to RM652 million through the issuance of 633.5 million new shares, comprising 571 million shares under the institutional offering and 62.5 million shares under the retail offering. There will be no offer for sale, so all proceeds will go to the company and not to any existing shareholders.

A substantial portion of the proceeds — about 95.7% — will be used to acquire at least 12 newbuild container vessels, supporting MTT Shipping’s strategy to expand capacity and strengthen its network coverage.

CIMB IB is acting as the principal adviser and a joint global coordinator, joint bookrunner, managing underwriter, and joint underwriter. CLSA Ltd and CLSA Securities Malaysia Sdn Bhd are joint global coordinators and bookrunners, while Affin Hwang Investment Bank Bhd serves as a joint bookrunner and underwriter.

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