Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 15): Kumpulan Wang Persaraan (Diperbadankan) (KWAP) investee Swift Haulage Bhd has secured nine cornerstone investors for its upcoming initial public offering (IPO), including AIA Bhd and HSBC Global Asset Management, a source familiar with the deal said.

Other funds that have signed on for the IPO are Amfunds Management Bhd, AmIslamic Funds Management Sdn Bhd, Areca Capital Sdn Bhd, Kenanga Investors Bhd, Nikko Asset Management Asia Ltd, UOB Asset Malaysia Bhd and Zurich Life Insurance Bhd, the source said.

The integrated logistics services provider, the source added, is expected to price the IPO at between RM1 and RM1.10 per share, raising some RM160 million and valuing the company at about RM900 million.

Swift, which is en route for to be listed on Bursa Malaysia's Main Market, has targeted to launch its IPO prospectus on Nov 30.

The company said its IPO involves the sale of 314.14 million shares, comprising 157.14 million new shares and 157 million existing shares.

Up to 275.21 million shares will be involved in the institutional offering, representing 30.93% of the enlarged share capital, with 157 million existing shares being offered to institutional and selected investors.

The remainder of the institutional offering comprising 118.21 million new shares will be offered to institutional and selected investors, including bumiputera investors approved by the Ministry of International Trade and Industry.

The retail offering will comprise 38.93 million new shares, representing 4.37% of the enlarged share capital, including 17.8 million shares to be made available to the Malaysian public via balloting, of which at least 8.9 million shares will be set aside for bumiputera investors. The remaining 21.14 million shares will be made available to eligible persons.

Persada Bina is the largest shareholder of the company with a 61.99% stake or 454.21 million shares pre-IPO. Post-IPO, Persada Bina's stake is expected to shrink to 38.12% or 339.21 million shares, assuming the overallotment option is not exercised.

Meanwhile, KWAP, also known as Retirement Fund (Inc), has a 13.61% stake in the group pre-listing, and will see its shareholding shrink to 9.12% post-IPO.

According to the draft IPO prospectus, Swift plans to use the IPO proceeds for the construction of a new warehouse, purchase of land, purchase of prime movers, repayment of bank borrowings and defraying listing expenses.

The group also intends to distribute dividends of up to 30% of profit to shareholders.

Swift inks IPO underwriting agreement

In a statement on Monday, Swift said it has inked an underwriting agreement for the IPO with MIDF Amanah Investment Bank Bhd, AmInvestment Bank Bhd, Kenanga Investment Bank Bhd, and UOB Kay Hian Securities (M) Sdn Bhd.

Swift chief executive officer (CEO) Loo Yong Hui said the execution of the underwriting agreement has brought Swift one step closer to being a listed company.

"This is indeed a significant milestone for the company as we leverage on the capital markets to propel us forward into the next stage of growth. With the additional resources at our disposal, this will further cement our position as a major total logistics solutions service provider in Malaysia," Loo said.

MIDF Investment CEO Datuk Dominic Silva said the group is delighted to be acting as the principal adviser for Swift's IPO.

"The IPO, which is a notable milestone in the company's history, will serve as an avenue for Swift Haulage to further enhance their reputation and brand presence. The strong support provided by the underwriting institutions is testimony to Swift Haulage's industry standing as a total logistics solutions service provider," he added.

Swift Haulage is an integrated logistics services provider that offers logistics solutions ranging from container haulage, land transportation, warehousing and container depot, and freight forwarding services.

Swift Haulage's fleet operations in Malaysia and Thailand consisted of 1,591 prime movers, 5,585 container and 698 box/curtain slider trailers, 22 trucks and 42 compressed natural gas tankers.

Swift Haulage's warehousing facilities consisted of 952,871 sq ft (owned and leased) storage capacity and container depots with a collective capacity of 28,500 twenty-foot equivalent units.

Edited ByS Kanagaraju
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