Container shipping and logistics firm MTT Shipping and Logistics Bhd is preparing for a Main Market listing on Bursa Malaysia to raise funds for its regional expansion and fleet growth.
In its draft prospectus filed with the Securities Commission Malaysia, the group said proceeds from its initial public offering (IPO) will primarily be used to acquire new container vessels and cover listing-related expenses.
MTT Shipping and Logistics — which offers container liner services, vessel chartering, and container storage solutions — currently operates 40 subsidiaries, one jointly controlled entity, and eight associates.
The IPO will involve the issuance of 633.5 million new shares, comprising 571 million institutional shares and 62.5 million retail shares, representing up to 25.3% of the company’s enlarged share capital. There will be no offer for sale, and the IPO price and indicative market value will be announced at a later stage.
For the financial year ended Dec 31, 2024 (FY2024), MTT recorded a net profit of RM250.38 million on revenue of RM1.20 billion.
Funds raised will support the company’s plan to expand its container liner network across Southeast Asia, with further reach into the Indian subcontinent and southern China.
As part of its fleet renewal and expansion strategy, MTT aims to acquire at least 10 new container vessels of various sizes over the next three years, funded through internal resources, bank borrowings, sukuk wakalah, and IPO proceeds.
The group has already committed to buying four newbuild vessels — two geared and two gearless — each with capacities between 1,400 and 1,462 TEUs, worth RM339.5 million in total. Delivery is scheduled between December 2026 and December 2027.
MTT also plans to replace aging vessels, including MTT Kuching Dua, MTT Bintulu, MTT Pulau Pinang, and MTT Haiphong, which have an average age of 27 years, by acquiring a 1,400-TEU geared ship expected for delivery in 2028.
Beyond replacement, MTT is looking to purchase five larger ships — three 3,300-TEU vessels and two 9,000-TEU vessels — within 18 to 36 months after its listing.
The company has proposed a dividend payout ratio of 40% of its net profit annually, subject to cash flow, maintenance, and capital expenditure needs.
CIMB Investment Bank Bhd is acting as the principal adviser, joint global coordinator, bookrunner, and underwriter for the IPO, while CLSA Securities Malaysia Sdn Bhd serves as joint global coordinator and bookrunner.
