Home / Business and Economy / Full Ships, IPO Plans: MTT Shipping Defies Mideast Conflict
Full Ships, IPO Plans: MTT Shipping Defies Mideast Conflict
1 Apr
Summary
- MTT Shipping aims for a 652 million ringgit IPO in April.
- Cargo volumes remain steady despite Middle East war disruptions.
- Company plans to expand fleet to 40 ships by 2029.
MTT Shipping and Logistics Bhd. is moving forward with its planned initial public offering (IPO) scheduled for April, aiming to raise 652 million ringgit. This expansion effort continues despite potential disruptions from the Middle East war, as the company reports steady cargo volumes.
The company intends to offer 633.5 million shares at 1.03 ringgit each, projecting a market value of approximately 2.58 billion ringgit. This IPO aligns with a recent increase in Malaysian listing activities.
Despite rising prices due to the conflict, MTT Shipping notes that freight cost increases in Asia are less pronounced than in other regions. Price mechanisms are in place to ensure bunker costs are passed on to customers, maintaining profitability.
MTT Shipping holds a significant market share of 46% for trade between Peninsular and East Malaysia. The company plans to utilize IPO funds to grow its fleet from 26 to 40 vessels by 2029, enhancing its capacity for domestic and international routes, including expansion into India.
The company is set to stop accepting retail orders on April 3 and is expected to be listed on April 21.
