MTT Shipping and Logistics Bhd is looking to raise up to RM652 million through an initial public offering (IPO) on the Main Market of Bursa Malaysia, potentially marking the largest fundraising exercise in Malaysia’s transportation and logistics sector in more than a decade.
MTT Shipping and Logistics Bhd executive chairman Datuk Seri Ong Kean Lee (centre) with other representatives at the group’s prospectus launch.
The Malaysia-based container liner operator has opened applications for both retail and institutional investors at an IPO price of RM1.03 per share. The retail portion will close on April 3, followed by the institutional offering on April 6, ahead of its planned listing on April 21.
If fully subscribed, the listing would be the biggest logistics-related IPO on Bursa Malaysia since 2013, when AirAsia X Bhd raised RM987.7 million and Westports Holdings Bhd raised RM2.03 billion.
MTT Shipping is principally engaged in container liner shipping, vessel chartering, container storage and related logistics services. The group operates across key regional markets including Brunei, China, India, Indonesia, Thailand and Singapore. It also owns the largest fleet of Malaysian-flagged containerships, with an average age of 6.7 years as at Sept 1, 2025, making it the youngest fleet among local operators.
Based on an enlarged issued share capital of 2.50 billion shares and the IPO price, the group is expected to command a market capitalisation of approximately RM2.6 billion upon listing. Executive chairman Datuk Seri Ong Kean Lee said the timing of the listing is aligned with evolving regional trade dynamics and continued demand for reliable shipping capacity across domestic and regional routes.
The IPO will involve the issuance of 633.5 million new shares, comprising 571 million shares for institutional investors and 62.5 million shares for retail investors. There will be no offer for sale, and the listing will offer investors up to a 25.3% stake in the company.
For the financial year ended Dec 31, 2024, MTT Shipping recorded a profit after tax of RM253.6 million on revenue of RM1.20 billion. About 95.7% of the IPO proceeds will be used to acquire at least 12 new container vessels as part of the group’s expansion strategy, with the balance allocated for listing-related expenses.
The company has also outlined a dividend policy targeting a minimum payout of 50% of annual net profit, subject to working capital requirements and capital expenditure plans.
CIMB Investment Bank Bhd has been appointed as principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter. CLSA Ltd and CLSA Securities Malaysia Sdn Bhd are acting as joint global coordinators and bookrunners, while Affin Hwang Investment Bank Bhd is serving as joint bookrunner and underwriter.
