KUALA LUMPUR (Dec 9): Integrated logistics service provider Swift Haulage Bhd’s initial public offering (IPO) shares to the public have been oversubscribed by 18.85 times.

A total of 13,536 applications seeking 353.28 million shares were received for the 17.8 million shares made available for application by the Malaysian public, said Tricor Investor & Issuing House Services Sdn Bhd.

Swift Haulage, a Retirement Fund Incorporated  (KWAP) investee, is slated to list on Bursa Malaysia’s Main Market on Dec 21.

Tricor said the Bumiputera portion was oversubscribed by 11.88 times, with 6,564 applications for 114.64 million shares received.

Meanwhile, for the public portion, 6,972 applications for 238.64 million shares were received, representing an oversubscription rate of 25.82 times.

“The 21.14 million issue shares available for application via pink application form have been fully subscribed,” added the issuing house in a statement on Thursday (Dec 9).

For the institutional offering, 275.21 million IPO shares offered to Malaysian institutional and selected investors, including Bumiputera investors approved by the Ministry of Trade and Industry, have been fully subscribed.

Following completion of the bookbuilding process under the institutional offering, the institutional price has been fixed at RM1.03 per IPO share, Tricor said. 

“Accordingly, the final retail price for the issue shares under the retail offering has also been fixed at RM1.03 per issue share,” it added.. 

The logistics services provider had previously noted that the IPO will be one of the largest this year. The total market capitalisation of the group upon its listing would be about RM916.5 million.

Swift Haulage said RM69.73 million from the proceeds raised will be allocated for repayment of bank borrowings, RM41.56 million to purchase land and RM28.56 million for the construction of a new warehouse in the Port Klang Free Zone.

Meanwhile, RM12 million will be used for the purchase of prime movers to expand its commercial vehicle fleet, and the remaining RM10 million for estimated listing expenses, according to the group.

MIDF Amanah Investment Bank Bhd is the principal adviser, joint lead bookrunner, joint bookrunner, managing underwriter and joint underwriter for the IPO.