Swift Haulage to raise RM162mil from IPO, one of Bursa's largest in 2021

Swift Haulage to raise RM162mil from IPO, one of Bursa's largest in 2021

Swift Haulage Bhd targets to raise RM161.9 million from its initial public offering (IPO).

KUALA LUMPUR: Swift Haulage Bhd targets to raise RM161.9 million from its initial public offering (IPO).

The logistics services provider said at RM1.03 per share, the IPO will be one of the largest of the year, having attracted the support of cornerstone investors that took up 58.7 per cent of the institutional offering.

In an IPO document on Bursa Malaysia, Swift Haulage said out of the proceeds, RM69.73 million will be allocated for repayment of bank borrowings, as well as maintaining cashflow for working capital and paring down its current liabilities.

A total of RM41.56 million will be utilised to buy land and RM28.56 million for construction of a new warehouse of 300,564 sq ft in the Port Klang Free Zone in Selangor.

In addition, RM12 million will be used for the acquisition of prime movers to expand its commercial vehicle fleet and the remaining RM10 million for estimated listing expenses.

Swift Haulage said the cornerstone investors are AIA Bhd, AmFunds Management Bhd, AmIslamic Funds Management Sdn Bhd, Areca Capital Sdn Bhd as fund manager of Areca Dynamic Growth Fund 10, Kenanga Investors Bhd, HSBC Global Asset Management (Hong Kong) Ltd, Nikko Asset Management Asia Ltd, UOB Asset Management (Malaysia) Bhd and Zurich Life Insurance Malaysia Bhd.

Group chief executive officer Loo Yong Hui said over the past decade, Swift Haulage had grown into a major integrated logistics service provider with a staff strength of 3,284, a fleet of 1,546 prime movers, 5,518 container trailers and 811 box and curtain-sider trailers.

Swift Haulage boasts a warehousing space (owned, leased and third party management) of more than 2.7 million square feet and container depot capacity of 28,500 TEUs.

"Our impending listing on Bursa Malaysia comes at an opportune time as global economic recovery continues. Swift Haulage's compelling growth story and investment merits has garnered the support of reputable institutional investors.

"I would like to thank our investors for their overwhelming support and have no doubt that this will enhance Swift Haulage's reputation and brand presence," he said.

MIDF Investment is the principal adviser, joint lead bookrunner, joint bookrunner, managing underwriter and joint underwriter of the IPO.

https://www.nst.com.my/business/2021/11/750075/swift-haulage-raise-rm162mil-ipo-one-bursas-largest-2021