KUALA LUMPUR (July 22): Khazanah Nasional Bhd investee Swift Haulage Bhd, an integrated logistics services provider, has filed a draft prospectus for an initial public offering (IPO) on the Main Market of Bursa Malaysia.

According to the group’s draft IPO prospectus posted on the Securities Commission Malaysia (SC) website, the proposed IPO will involve the sale of 314.14 million ordinary shares, comprising 157.14 million new shares and 157 million existing shares.

Up to 275.2 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 118.2 million new shares will be offered to institutional and selected investors, including bumiputera investors approved by the Ministry of International Trade and Industry (MITI).

In terms of the retail offering comprising 38.93 million new shares, representing 4.37% of the enlarged share capital, 17.79 million new shares will be made available for the Malaysian public via balloting, of which at least 8.89 million new shares will be earmarked for bumiputera investors.

The remaining 21.13 million new shares will be made available to eligible directors, employees and other persons who have contributed to the success of Swift Haulage.

According to the draft IPO prospectus, Khazanah has a 13.61% stake in the group.

Swift Haulage said it plans to use the proceeds for the construction of a new warehouse, purchase of land, acquisition of cold-chain logistics companies, purchase of prime movers, repayment of bank borrowings and defraying listing expenses.

The group said it intends to construct an ambient temperature warehouse for the storage of general goods with approximately 178,000 sq ft of floor storage and racking space on leasehold land in the Port Klang Free Zone in Selangor. 

In terms of the purchase of new land, the group said it had entered a share sale agreement to acquire the entire equity interest in Ann Joo Properties, which is expected to be completed by the third quarter ending Sept 30, 2021 (3QFY21).

“Ann Joo Properties has, among others, leased the Bandar Sultan Sulaiman land from the developer, Selangor State Development Corp (PKNS). As part of the agreement for the Bandar Sultan Sulaiman land, Ann Joo Properties has the option to purchase the land from PKNS.

“We expect to complete the acquisition of the Bandar Sultan Sulaiman land by 1QFY22, following which we intend to continue leasing the Bandar Sultan Sulaiman land to the two existing tenants,” the group added.

In regard to acquisition of cold-chain logistics companies, the group said that through its wholly-owned subsidiary Swift Integrated Logistics Sdn Bhd, it had acquired 50% equity interest in Hypercold Logistics Sdn Bhd and 15% equity interest in Platinum Coldchain Sdn Bhd.

“Hypercold Logistics and Platinum Coldchain are currently involved in providing cold-chain logistics services in Sabah. This is in line with our intention to provide cold chain logistics services in Sabah.

“Part of our future plans is to expand Hypercold Logistics’ existing cold-chain facilities by expanding its cold-chain storage capacity warehouse from approximately 3,000 pallets to approximately 4,500 pallets,” it added.

Swift Haulage also said that it intends to purchase 30 new prime movers in Malaysia throughout 2022, with the aim of expanding its commercial vehicle fleet.

Meanwhile, the integrated logistics services provider noted that it did not declare any dividends for FY18, FY19 and FY20, but said that it intends to recommend and distribute a dividend of up to 30% of profit to shareholders.

MIDF Amanah Investment Bank Bhd is the principal adviser for the IPO.