MTTSL eyes RM652.5 mln in IPO, largest in over a decade for sector

KUALA LUMPUR (March 26): MTT Shipping and Logistics Bhd (MTTSL) plans to raise approximately RM652.5 million through its listing on the Main Market of Bursa Malaysia.

The fundraising will be carried out via the public issue of 633.5 million new ordinary shares, with all proceeds accruing entirely to the group and no offer for sale of existing shares.

MTTSL, Malaysia’s leading container liner shipping operator based on its domestic cabotage market share between Peninsular Malaysia, East Malaysia and Brunei in 2025, unveiled its prospectus on Thursday.

The group is principally engaged in the provision of container liner shipping services, vessel chartering and container storage and other container related services.

Notably, MTTSL’s listing marks the largest IPO in Malaysia’s transportation and logistics sector by market capitalisation and deal size since 2013.

The group is scheduled to be listed on April 21, 2026.

Of the total proceeds, RM624.7 million or 96.7 per cent will be allocated for the acquisition of at least 12 newbuild container vessels, while the remainder will be used to defray listing-related expenses.

The investment supports the group’s long-term strategy to expand its operational footprint across Southeast Asia and capture growing demand in domestic and regional trade, it said in a statement.

Based on an enlarged issued share capital of 2.5 billion shares and an IPO price of RM1.03 per share, MTTSL is expected to achieve a market capitalisation of about RM2.6 billion upon listing.

The group has also set a dividend policy targeting a payout of at least 50 per cent of its profit after tax.

Executive chairman Ong Kean Lee said the expansion is timely as regional trade continues to evolve, driving demand for reliable shipping capacity.

“The addition of these new vessels will allow us to further enhance our service offerings and support the growing movement of goods across the markets we serve.

These investments collectively will enable us to enhance our operational capacity, strengthen our financial position and better position us to capture opportunities arising from the growing regional trade,” he said.

Meanwhile, CIMB Investment Bank Bhd chief executive officer and regional head of investment banking Nor Masliza Sulaiman said MTTSL’s listing signals the continued health and vibrancy of the equity capital markets in Malaysia.

“CIMB is privileged to have played a key role in bringing a homegrown brand name such as MTTSL to market, who has witnessed an impressive rise to become Malaysia’s largest container shipping operator today,” she added.

Applications for the public issue under the Malaysian public will close at 5.00 pm on April 3, 2026.

CIMB Investment Bank Berhad is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the IPO.

CLSA Limited and CLSA Securities Malaysia Sdn Bhd are joint global coordinators and joint bookrunners, while Affin Hwang Investment Bank Berhad serves as joint bookrunner and joint underwriter.