KUALA LUMPUR: Swift Haulage Berhad (Swift Logistics) today launched its prospectus and plans to list on the Main Board of Bursa Malaysia on Dec 21, aiming to raise RM161.9 million through an initial public offering (IPO). Swift Logistics, which is 13.61% owned by the Civil Service Retirement Fund (KWAP), said in a Bursa Malaysia filing on Tuesday that RM69.73 million of the funds raised will be used to repay bank loans to reduce its debt ratio.

Another RM41.56 million will be used to purchase land, while RM28.56 million will be used for the construction of a new warehouse of approximately 300,564 sq ft in the Port Klang Free Zone in Selangor. Meanwhile, RM12 million will be purchased to expand the commercial fleet with trucks and the remaining RM10 million will be used as listing fees.

In terms of land purchases, the group said it had signed a share sale agreement on May 28 to acquire the entire stake in the Ann Joo property for a total value of RM10 million; the acquisition was completed on July 15.

“Part of our strategy is to expand our commercial team by adding new trucks to our operations in Malaysia in 2022. These trucks are similar to what we currently have, and they mainly provide integrated logistics services.” “We intend to use the funds raised to purchase 30 new trucks, which are expected to cost RM12 million.”

The group said that the IPO price will not be higher than RM1.03 and the total market value after listing is expected to be about RM916.5 million. The IPO will offer 314,142,900 shares including 157,142,900 new shares and 157,000,000 shares offered by existing shareholders. Among them 17,796,200 shares will be offered to the public; 21,137,300 shares will be offered to qualified directors, employees and persons who have contributed to the company: and a total of 275,209,400 shares will be offered privately to designated investors and to gain access to international trade indigenous investors approved by the Ministry of Industry.

Looking ahead, Swift Logistics said it will focus on leveraging its core competitiveness and advantages in integrated logistics to seize business opportunities and develop a platform for business.

“This means that our business strategy and plans will be based on strengthening and expanding our operational facilities, including warehouses and container yards, as well as expanding our fleet operations.”