KUALA LUMPUR: Swift Haulage Berhad’s (Swift Haulage) initial public offering (IPO) has attracted nine cornerstone investors and at up to RM1.10 per share, could value the company at nearly RM1 billion, people close to the deal said. The cornerstone investors had snapped up 100 million shares or more than half of the non-Ministry of International Trade and Industry institutional block, they said.

The integrated logistics services provider was expected to price the IPO shares at between RM1 and RM1.10 each, they added.

“The proceeds from the cornerstone investors will be around RM150 million to RM160 million, valuing the company at more than RM900 million,” one of them told the New Straits Times.

The cornerstone investors are Amfund Management Bhd, AmIslamic Funds Management Sdn Bhd, Areca Capital Sdn Bhd, Kenanga Investors Bhd, Nikko Asset Management Asia Ltd, UOB Asset Malaysia Bhd, Zurich Life Insurance Bhd, AIA Bhd and HSBC Global Asset Management. Swift Haulage’s IPO is one of the sizeable new listings on Bursa Malaysia’s main market this year. The company is targeting to launch its IPO prospectus on November 30.

The proposed IPO involves 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 are under the institutional offering, representing 30.93 per cent of the company’s 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,” the company said. Persada Bina is Swift Haulage’s largest shareholder of the company with a 61.99 per cent stake or 454.21 million shares pre-IPO. Post-IPO, Persada Bina’s stake is expected to shrink to 38.12 per cent or 339.21 million shares, assuming the overallotment option is not exercised. The Retirement Fund (Inc) or KWAP has a 13.61 per cent stake in the company pre-listing, and will see its shareholding shrink to 9.12 per cent post-IPO.

On Monday, the company signed an underwriting agreement with MIDF Amanah Investment Bank Bhd, AmInvestment Bank Bhd, Kenanga Investment Bank Bhd and UOB Kay Hian Securities (M) Sdn Bhd. Swift Haulage group chief executive officer Loo Yong Hui said the agreement brought the company one step closer to being a listed entity.

“This is indeed a significant milestone for the company as we leverage on the capital markets to propel us forward into the next stage of growth,” he said. MIDF Amanah chief executive officer Datuk Dominic Silva said the strong support provided by the underwriting institutions was testimony to Swift Haulage’s industry standing as a total logistics solutions service provider.

Swift Haulage’s fleet operations in Malaysia and Thailand consisted of 1,591 prime movers, 5,585 container and 698 box/curtain slider trailers, 22 trucks and 42 compressed natural gas tankers. Its warehousing facilities consist of 952,871 sq ft (owned and leased) storage capacity and container depots with a collective capacity of 28,500 twenty-foot equivalent units.