Kuala lumpur: MTT Shipping and Logistics Bhd made a notable debut on Bursa Malaysia's Main Market today, opening at RM1.08, which is five sen higher than its initial public offering (IPO) price of RM1.03. The company's IPO garnered significant interest, being oversubscribed by 2.7 times and raising a total of RM652.5 million.
According to BERNAMA News Agency, MTT Shipping plans to allocate RM624.7 million of the IPO proceeds towards acquiring at least 12 container vessels over the next three years. This strategic move is a key component of the company's expansion plans as it seeks to enhance its fleet capacity.
During a press conference following the listing ceremony, Managing Director Ooi Lean Hin expressed optimism about the company's market debut, highlighting that initial price fluctuations are typical for newly listed companies. He emphasized that MTT Shipping remains focused on its strong fundamentals rather than short-term price movements.
Ooi elaborated on the company's immediate priorities, which include executing expansion plans to grow its fleet. He noted that the company currently operates 25 vessels, possessing a relatively young fleet, and aims to acquire more container ships to extend its service routes.
Addressing industry challenges, Ooi commented on the impact of rising oil prices, exacerbated by the United States-Iran conflict, on the global economy. He stated that while higher fuel costs affect operations, MTT Shipping can mitigate these effects by passing on cost increases to customers through bunker adjustment mechanisms.
Ooi also mentioned that tightening market capacity has supported charter rates, with recent renewals showing rate increases of over 10 percent. Despite global uncertainties, he assured that the company is not directly exposed to conflict-affected areas and has experienced no operational disruptions.
Looking ahead, Ooi expressed confidence in the stability of the shipping industry in the near term, contingent on the resolution of geopolitical tensions and stabilization of oil prices. He noted that the market is buoyed by intra-Asia trade growth, particularly involving China, Southeast Asia, and India, driven by ongoing supply chain realignments.