KUALA LUMPUR: MTT Shipping and Logistics Bhd is positioning itself to ride an emerging wave of intra-Asia trade growth, underpinned by global supply chain realignment and persistent vessel shortages, as it prepares for a Main Market listing on Bursa Malaysia Securities scheduled for April 21.
Managing director Ooi Lean Hin said the group is expanding at a time when structural shifts in global trade are increasingly favouring Southeast Asia, particularly as manufacturing and supply chains diversify away from China.
“There’s a big shift in global trade driven by supply chain realignment and geopolitical factors. We are seeing exports from Southeast Asia to the US rising sharply, and this trend will continue as more production capacity comes onstream,” he said at the prospectus launch today.
Ooi noted that while exports from China to the US declined by about 7% to 8% last year, shipments from Southeast Asia surged by 23% over the same period, signalling a redistribution of global manufacturing flows.
He said additional cargo from factory relocations is expected to materialise over the next 18 to 24 months, providing further upside to regional shipping demand.
To capitalise on this, MTT Shipping is committing 95.7% of its initial public offering (IPO) proceeds towards acquiring at least 12 newbuild container vessels, with deliveries already lined up progressively from end-2026 through to 2029.
Of the 633.5 million shares offered, 571 million are allocated to institutional investors, including 312 million reserved for investors approved by the Ministry of Investment Trade and Industry (Miti), while the remaining 162.5 million are set aside for eligible persons and the Malaysian public.
The container liner operator is raising RM652.5 million via the issuance of 633.5 million new shares, with the bulk of proceeds earmarked for fleet expansion to capture rising cargo volumes across the region. The expansion comes amid a tightening global supply of vessels, particularly in the feeder segment where MTT Shipping operates.
Ooi said the industry continues to face a structural shortage of ships, exacerbated by ageing fleets and stricter environmental regulations requiring the replacement of older vessels. “The world is very short of ships. The ratio of newbuild orders versus vessels that need to be phased out remains low, and this is supporting charter rates.”
He added that charter rates remain firm and are expected to stay elevated over the medium term, supported by limited supply and sustained demand for smaller vessels serving intra-Asia routes.
The company currently operates a fleet of 26 vessels, with full utilisation across its network, while also chartering ships to major global liner operators.
Despite rising fuel costs, Ooi said, the group is able to manage cost pressures through industry mechanisms such as fuel adjustment factors, which allow shipping companies to pass on fluctuations in bunker prices. “Oil prices do impact us, but there are mechanisms to recover these costs. It’s a standard practice in the industry.”
On geopolitical risks, including tensions in the Middle East, Ooi said MTT Shipping has no direct exposure to Gulf trade routes, although prolonged disruptions could have broader implications on global trade and energy prices.
For now, he said, cargo volumes remain stable, with some global rerouting of shipments observed.
Domestically, MTT Shipping continues to anchor its business on Malaysia’s cabotage trade, which accounts for about 40% of its revenue, while expanding its regional footprint across Southeast Asia and key Asian routes.
On the financial front, the group expects to maintain a healthy balance sheet post-listing, with gearing remaining below 0.5 times, supporting both expansion and shareholder returns.
MTT Shipping has outlined a dividend policy of at least 50% of profit after tax, signalling confidence in its earnings outlook despite ongoing capital expenditure.
“We are still very profitable and generating enough cash. We don’t see any issue in sustaining the dividend payout,” Ooi said.
CIMB Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter, and joint underwriter for the IPO. CLSA Limited and CLSA Securities Malaysia Sdn Bhd are the joint global coordinators and joint bookrunners, while Affin Hwang Investment Bank Bhd is the joint bookrunner and joint underwriter.
